Company Number: 14355976

Analysis Date: 2025-07-19 12:40 UTC

1. Credit Opinion: DECLINE

BALL ROLLING LTD shows significant concerns from a credit perspective. Despite being active and having no overdue filings, the company’s financials reveal net liabilities and negative shareholders’ funds as of the latest year-end. The company’s balance sheet indicates a net liability position of -£49,528 at 30 September 2024, down from -£17,953 the prior year. This suggests the company’s liabilities exceed its total assets, implying weak financial solvency and potential difficulty servicing debt. The absence of fixed assets and reliance on current assets, combined with a large amount of long-term creditors (£538k), raise concerns about liquidity and financial stability. The company's micro-entity status and zero employees indicate a very small operation with limited resources. Given these points and the fact that the company trades in real estate (buying and selling own real estate), a sector that can be capital intensive and cyclical, the risk profile is elevated. Without evidence of profitability or improving net asset position, extending credit would be imprudent.

2. Financial Strength:

The balance sheet shows fixed assets fell from £125k in 2023 to zero in 2024, while current assets remained stable around £690k. However, current liabilities remain high at £204k, and long-term liabilities stand at £538k, causing net assets to be negative (£49.5k). This negative equity position suggests the company is undercapitalised, with the accumulated losses or creditor obligations exceeding its asset base. The lack of employees and minimal operational footprint limit the company’s ability to generate revenue or improve its financial position organically. Overall, the financial strength is weak with a balance sheet showing net liabilities and heavy creditor dependence.

3. Cash Flow Assessment:

Current assets exceed current liabilities by £488k, indicating positive net working capital on a short-term basis. However, current assets mainly consist of cash or equivalents (not specified in detail), but the large long-term creditors (£538k) suggest significant obligations beyond one year. The company’s liquidity in the near term appears adequate to meet short-term obligations, but the negative equity and sizeable long-term liabilities imply potential cash flow strain over the medium to long term. No employees or operating history data limit insight into cash flow generation from operations. Overall, liquidity is borderline and working capital is positive, but the company’s ability to generate sustainable cash flow to service debts is uncertain.

4. Monitoring Points:

• Monitor net asset position to detect any further deterioration or improvement.
• Watch creditor balances, especially long-term liabilities and repayment terms.
• Track any changes in fixed asset holdings or capital structure.
• Review cash flow statements if available to assess operational cash generation.
• Observe any changes in ownership or director conduct that might impact credit risk.
• Monitor sector conditions in real estate which could affect asset values and liquidity.