B2C SOURCE LTD

Executive Summary

B2C Source Ltd demonstrates significant solvency and liquidity challenges, with consistently negative net assets and working capital deficits over several years. While regulatory compliance and stable management are positive factors, the financial position raises high risk concerns regarding the company’s ability to meet its obligations and continue operations without external intervention. Further due diligence into cash flows, operational performance, and management strategy is recommended.

B2C SOURCE LTD - Analysis Report

Company Number: 12895367

Analysis Date: 2025-07-19 12:04 UTC

1. Risk Rating: HIGH
   The company shows persistent and material negative net assets and net current liabilities over multiple years, indicating ongoing solvency and liquidity concerns.

2. Key Concerns:

• Consistent Negative Net Assets: The net assets have deteriorated from -£14,179 in 2020 to -£22,335 in 2024, signaling erosion of shareholder equity and potential insolvency risks.
• Negative Working Capital: Current liabilities exceed current assets by £22,559 as of 2024, indicating the company may struggle to meet short-term obligations without external financing or asset liquidation.
• Limited Scale and Resources: The company is micro-entity sized with only 2 employees and minimal fixed assets (£224), which may limit operational resilience and ability to recover financially.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and operational transparency.
• Stable Directorship and Ownership: The sole director, who also holds 75-100% control, has been in place since incorporation with no adverse conduct records noted, suggesting stable governance.
• Micro-Entity Reporting: Utilization of simplified accounting standards reduces administrative burden and costs, appropriate for the company size.

4. Due Diligence Notes:

• Investigate the cause of persistent losses or negative reserves and whether there is a viable turnaround plan or external funding support.
• Review cash flow statements and bank facilities to assess liquidity management and ability to meet creditor demands.
• Evaluate customer base, sales trends, and market position within the internet retail sector (SIC 47910) to understand operational sustainability.
• Confirm no contingent liabilities or undisclosed debts that could further impair solvency.
• Discuss with management the strategic outlook and any planned capital injections or restructuring.