Company Number: 12695131

Analysis Date: 2025-07-20 16:15 UTC

1. Credit Opinion: DECLINE
   All Glory Cargo Limited presents significant credit risk primarily due to persistent and growing net liabilities, negative shareholders’ funds, and increasing borrowings. The company’s balance sheet shows a deteriorating financial position with net liabilities worsening from £-8,887 in 2023 to £-21,952 in 2024. Current liabilities substantially exceed current assets, indicating poor short-term liquidity and an inability to meet immediate obligations. The company is reliant on external borrowing, which more than doubled year-on-year (£12,087 in 2023 to £28,863 in 2024), raising concerns over debt servicing capability. Given the limited scale of operations (1 employee) and absence of cash reserves as of the latest accounts, the company lacks financial resilience and is vulnerable to economic downturns. Management’s track record does not demonstrate turnaround success or improved financial stewardship over the last three years. Overall, the company’s financial trajectory is negative, posing a high risk for extending credit facilities.

2. Financial Strength:
   The company’s balance sheet is weak. Net assets are negative by £21,952 as of March 2024, reflecting accumulated losses and an erosion of equity. Total current assets (£7,390) are less than current liabilities (£28,863) when including short and long-term creditors, indicating poor working capital management. The increase in long-term borrowings without corresponding asset growth or equity injection signals potential over-leverage. Share capital remains modest at £5,000, insufficient to support ongoing losses. The company has no tangible fixed assets reported, and the business appears to be financed mainly through debt, undermining solvency.

3. Cash Flow Assessment:
   The company shows minimal cash balances (£nil reported in 2024, £284 in 2023) and relies on debtor collections (£7,390 in 2024). The working capital deficit and substantial creditor balances suggest cash flow constraints with limited buffer to absorb financial stress. No evidence of cash flow generation or profitability is provided, and director remuneration remains constant despite worsening financials, which may strain liquidity further. The rising borrowings imply reliance on external funds to meet operational needs, increasing refinancing risk.

4. Monitoring Points:

• Net asset position and trends in shareholders’ funds
• Borrowings level and terms, including repayment schedules and interest obligations
• Cash balances and debtor collection efficiency
• Timely payment of creditors and tax liabilities
• Any capital injection or restructuring plans by management to improve financial health
• Director’s strategy to return the company to profitability and strengthen liquidity
• Filing compliance and confirmation of no overdue statutory returns to avoid penalties