Company Number: 13970867

Analysis Date: 2025-07-29 19:35 UTC

1. Risk Rating: LOW

Justification: Barnwell Florists Limited shows a stable financial position with positive net current assets and shareholders’ funds consistently around £38k-£40k. There are no overdue filings or indications of distress. The company has sufficient cash reserves relative to current liabilities, indicating good short-term liquidity.

2. Key Concerns:

• Declining cash balance: Cash decreased from £59,502 in 2023 to £52,438 in 2024, which may warrant monitoring to ensure ongoing liquidity.
• Reduction in net current assets and shareholders’ funds (from £39,759 to £38,278), albeit small, suggests a marginal weakening of financial position.
• Relatively small scale of operations with limited fixed assets and a single director/shareholder, which may imply limited diversification and dependency risk.

3. Positive Indicators:

• Positive net current assets and shareholders’ funds, indicating solvency and a buffer to cover short-term liabilities.
• No bank overdrafts or loans reported, suggesting debt-free operations and lower financial risk.
• Timely filing of accounts and confirmation statements, reflecting regulatory compliance and good governance.
• The company operates under the small companies regime with stable employee numbers (6 employees), suggesting operational stability.

4. Due Diligence Notes:

• Investigate reasons behind the cash reduction and confirm cash flow projections to assess future liquidity.
• Review profit and loss details (not filed publicly due to exemption) to understand profitability trends and sustainability.
• Assess customer concentration risk given the relatively small debtor balances.
• Confirm the director’s strategy for growth or investment given the small asset base and limited capital.
• Verify the impact of dividends paid (£33,400 in 2024) on retained earnings and cash reserves to understand shareholder distributions relative to earnings.