BANNUT TREE BOOKKEEPING LIMITED

Executive Summary

Bannut Tree Bookkeeping Limited’s financials reveal a severe decline in capital and liquidity over the past year, with net assets and cash reserves nearly exhausted. The company’s current financial position is insufficient to support credit risk, and it lacks the operational scale and resilience to reliably meet debt obligations. Credit approval is not recommended at this time.

BANNUT TREE BOOKKEEPING LIMITED - Analysis Report

Company Number: 13739746

Analysis Date: 2025-07-29 13:15 UTC

1. Credit Opinion: DECLINE
   Bannut Tree Bookkeeping Limited shows a significant and concerning decline in financial position over the last two years. The company's current assets have plummeted from £6,826 in 2022 to just £2 in 2023, with virtually no cash on hand. Current liabilities dropped from £3,640 to £1, but this is due to an overall sharp contraction in business scale rather than improved debt management. The drastic reduction in net current assets and shareholders’ funds from £3,186 to £1 indicates extreme erosion of financial strength, suggesting inability to comfortably service debt or meet commercial obligations. The absence of employees and minimal operational scale further reduce business resilience. Given these factors, the company poses a high credit risk and is not recommended for new credit facilities.

2. Financial Strength:
   The balance sheet reflects a near-total depletion of working capital and equity. Shareholders’ funds have declined from £3,186 to £1 over one year, signaling accumulated losses or write-downs. The company holds negligible current assets, essentially no cash, and only nominal receivables. While current liabilities are low, this is likely a function of reduced activity rather than prudent liability management. The lack of fixed assets or long-term investments also indicates no tangible asset buffer. Overall, the financial structure is extremely weak and lacks sufficient capital to sustain operations or absorb financial shocks.

3. Cash Flow Assessment:
   Liquidity is critically impaired. Cash reserves have dropped from £4,401 to zero, and trade debtors have almost disappeared (£2 vs. £2,425), indicating a halt or severe reduction in revenue-generating activities. The working capital position is effectively nil, raising concerns about the company's ability to meet immediate obligations. The absence of employees points to either a dormant or minimally active business model, which limits cash inflows. Without positive cash flow or external funding, the company cannot be expected to service new or existing credit facilities.

4. Monitoring Points:

• Monitor any new filings or accounts for changes in asset and liability structure.
• Watch for increases in cash balances or working capital that might signal operational improvement.
• Review director statements or business plans for evidence of turnaround strategies.
• Keep alert for any late filings or changes in company status that could indicate distress.