BARNWELL FLORISTS LIMITED

Executive Summary

Barnwell Florists Limited presents a low-risk profile with a solvent and liquid position supported by positive working capital and no debt. The company complies with regulatory requirements and maintains operational stability, though the relatively small scale and declining cash balance warrant monitoring. Further analysis of profitability and cash flow forecasts is recommended to confirm ongoing financial health.

BARNWELL FLORISTS LIMITED - Analysis Report

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.