Company Number: 12791211

Analysis Date: 2025-07-19 12:23 UTC

1. Credit Opinion: DECLINE. The company’s financials show a deteriorating position with net liabilities reported in the latest accounts. Negative net assets of £270 at year-end 2024 indicate the company is insolvent on a balance sheet basis. The shrinking fixed and current assets alongside rising current liabilities raise significant concerns about its ability to meet short-term obligations and service any new credit facilities. Given the micro-entity status and limited scale with just one employee, the risk of default is elevated without evidence of improved cash flow or capital injection.

2. Financial Strength: The balance sheet reveals weakening financial strength. Net current liabilities stand at £1,898 as of August 2024, worsening from £2,720 in 2023 (negative figure means current liabilities exceed current assets). Total net liabilities of £270 contrast with positive net assets of £735 the prior year, showing a downward trend in shareholder equity and overall capital base. Fixed assets have also declined from £1,985 to £1,628. This erosion of equity and persistent short-term liquidity issues undermine the company’s financial resilience.

3. Cash Flow Assessment: The negative working capital position and increasing current liabilities imply cash flow constraints. The company only holds £1,626 in current assets against £3,524 due within one year, indicating possible challenges in meeting immediate payables. The lack of detailed profit and loss data restricts precise cash flow analysis, but the balance sheet structure suggests operational cash flow is insufficient to cover liabilities without external funding. This raises concerns about ongoing liquidity and operational continuity.

4. Monitoring Points:

• Track quarterly cash flow and liquidity measures closely.
• Monitor any capital injections or shareholder advances to improve net assets.
• Review updated financial statements for signs of stabilizing or improving working capital.
• Observe director’s management actions to reduce liabilities or increase revenues.
• Watch for any late payments or defaults on creditors and statutory filings.