Company Number: 13814494

Analysis Date: 2025-07-19 13:02 UTC

1. Credit Opinion: DECLINE. The company shows a weak financial position with net current liabilities of £171,237 and negative net assets of the same amount as of 31 December 2023. Despite being a micro-entity engaged in property letting and trading, the balance sheet reflects a deficit, indicating liabilities exceed assets. This raises concerns about its ability to meet short-term obligations and service debt. The company has not demonstrated financial growth or profitability over the last three years, maintaining static fixed assets and worsening net current asset position. Directors are also shareholders and business consultants but there is no evidence of strong financial management or operational improvements mitigating risks.

2. Financial Strength: The balance sheet reveals total fixed assets of £130,552, unchanged over three years, and current assets declining from £2,469 in 2022 to £1,426 in 2023. Current liabilities have increased slightly to £172,663 resulting in a significant working capital deficiency of £171,237. Net assets are negative at £40,685, reflecting accumulated losses or undercapitalization. Shareholders’ funds mirror net assets, signaling no external equity injection to strengthen the balance sheet. Overall, the company is financially fragile with insufficient asset coverage for its liabilities.

3. Cash Flow Assessment: Current asset levels are very low and declining, with minimal cash or receivables (£1,426 in 2023). The large current liabilities suggest a heavy short-term debt burden that the company cannot comfortably cover with available liquid resources. Negative working capital indicates potential liquidity constraints and risk of payment delays or default. The company’s micro status and small employee base (2 employees) suggest limited operational scale and cash generation capacity. Without stronger cash reserves or profitability, the company’s ability to service debt and meet operational expenses is doubtful.

4. Monitoring Points:

• Monitor changes in current liabilities and working capital to detect worsening liquidity.
• Watch for improvements in current assets and cash balances.
• Review any new equity injections or debt restructuring efforts.
• Track profitability trends and cash flow from operations.
• Observe directors’ actions regarding financial restructuring or strategic changes.
• Monitor timely submission of future accounts and confirmation statements.