BALLANTYNE'S CHOCOLATES AND CONFECTIONERY LTD

Executive Summary

Ballantyne’s Chocolates and Confectionery Ltd currently faces high financial risk due to increasing net liabilities and significant negative working capital, raising concerns about its ability to meet short-term and long-term obligations. While it maintains compliance with filing deadlines and is operational, limited financial transparency and absence of profitability data warrant closer examination of its cash flow and management strategies. Investors should proceed cautiously and seek further financial details before engagement.

BALLANTYNE'S CHOCOLATES AND CONFECTIONERY LTD - Analysis Report

Company Number: 12853324

Analysis Date: 2025-07-29 20:50 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, demonstrated by persistent net liabilities and negative working capital in the latest financial year. The worsening net asset position and current liabilities exceeding current assets indicate elevated financial distress risk.

2. Key Concerns:

• Negative Net Assets: The net liabilities have increased from (£17,989) in 2023 to (£26,382) in 2024, indicating the company’s liabilities exceed its total assets, a serious solvency warning.
• Negative Working Capital: Current liabilities of £43,004 substantially exceed current assets of £12,655, resulting in a net current liability of (£30,297), which could impair the company’s ability to meet short-term obligations.
• Financial Volatility and Lack of Profit & Loss Detail: The company has not disclosed a profit and loss account, limiting visibility on operational performance and cash flow generation, which are critical for assessing ongoing viability.

3. Positive Indicators:

• Compliance with Filing Requirements: The company has submitted its annual accounts and confirmation statement on time with no overdue filings, demonstrating regulatory compliance and governance discipline.
• Stable Employee Count: The workforce remains consistent at 2 employees, which may indicate controlled operating expenses aligned with a micro-entity scale.
• No Indication of Insolvency Proceedings: The company is active and not in liquidation, administration, or receivership, suggesting it remains operational despite financial stress.

4. Due Diligence Notes:

• Investigate Cash Flow and Profitability: Obtain detailed management accounts or cash flow statements to understand operational cash generation and whether the company can sustain its liabilities.
• Review Director Plans: Seek insight into management’s strategy to address the negative net asset position and liquidity shortfall. Confirm if external funding or restructuring measures are underway.
• Creditors and Debt Terms: Clarify the composition and maturity of current liabilities to assess immediate repayment obligations and potential refinancing risks.