ADRIAN REED DEVELOPMENTS LIMITED

Executive Summary

Adrian Reed Developments Limited shows a weak financial position with negative net assets, minimal liquidity, and limited operational scale. The company lacks sufficient financial strength and cash flow to support credit facilities at this time. Without capital injection or improved profitability, it poses a high credit risk. Monitoring should focus on liquidity, asset valuation, and any equity support from the director.

ADRIAN REED DEVELOPMENTS LIMITED - Analysis Report

Company Number: 13952408

Analysis Date: 2025-07-29 15:32 UTC

1. Credit Opinion: DECLINE
   Adrian Reed Developments Limited is a small private limited company engaged in buying and selling its own real estate. The company shows a negative net asset position of £2,096 as of 31 March 2024, indicating a balance sheet deficit. With only one employee (the director) and minimal share capital (£1), the company’s financial position is weak. The current liabilities exceed the carrying value of tangible assets (land and buildings) by approximately £2,096, and cash balances are negligible (£1 in 2023). There is no evidence of profitability or positive retained earnings, and the company relies entirely on the director who controls 100% of shares and voting rights. The company is newly incorporated (in 2022) and has limited financial history, making it difficult to assess sustainable cash flow generation or business resilience. Given the limited financial strength, negative net asset position, and lack of liquidity, the company does not demonstrate adequate capacity to service debt or credit obligations at this stage.

2. Financial Strength:
   The balance sheet shows tangible fixed assets valued at £153,540 with current liabilities of £155,636, resulting in negative net assets of £2,096. Shareholders’ funds are negative, reflecting accumulated losses or other adjustments in retained earnings. The company holds no significant cash reserves and has only one issued share of £1. There is no indication of external financing or capital injections beyond the initial £1 share capital. The negative equity position and current liabilities exceeding assets suggest financial fragility and limited buffer to absorb financial shocks.

3. Cash Flow Assessment:
   The company’s cash position is minimal (£1 in 2023), with no reported cash figure for 2024 but likely negligible given the balance sheet data. Current liabilities are substantial in relation to assets, with no current asset data provided but presumably low given the business nature and lack of working capital disclosure. The lack of liquidity and working capital means the company may struggle to meet short-term obligations without additional funding or asset disposals. There is no profit and loss data provided, but the negative retained earnings imply operational losses or write-downs affecting cash generation capacity.

4. Monitoring Points:

• Monitor changes in net assets and shareholders’ funds to detect improvement or further deterioration.
• Review cash flow statements and working capital movements once available to assess liquidity trends.
• Watch for director or shareholder capital injections to support operations.
• Follow any changes in current liabilities, especially trade creditors, to assess debt repayment capacity.
• Track property valuations and any disposals or acquisitions that impact asset base and liquidity.
• Monitor filing of next accounts and confirmation statements for compliance and updated financial data.