Company Number: 13828160

Analysis Date: 2025-07-29 18:12 UTC

1. Credit Opinion: DECLINE
   Baroque Lyme Ltd’s financials reveal significant concerns regarding its ability to meet short-term obligations. The company shows net current liabilities of £86,307 and negative shareholders’ funds of £21,900 as of its first full financial year ending March 2023. The bulk of current liabilities (£84,939) are directors’ current account balances, indicating the company’s reliance on director funding rather than external credit or operational cash flow. This suggests limited liquidity and weak financial resilience, making the company a high-risk credit exposure at this stage.

2. Financial Strength:
   The balance sheet is fragile with total assets less current liabilities at a negative £21,800. Fixed assets consist mainly of goodwill (£58,404) from a business acquisition and tangible assets of £6,103. Current assets including cash (£5,410) and debtors (£1,296) are insufficient to cover current liabilities. Negative net current assets indicate working capital deficiency. The company’s equity is negative, reflecting accumulated losses or start-up investment write-offs. Overall, the financial position is weak and shows no buffer against trading downturns.

3. Cash Flow Assessment:
   Cash balance of £5,410 is modest and unlikely to sustain ongoing operational needs given creditors of £96,863 due within one year. Significant reliance on director loans (directors’ current accounts) underscores poor cash generation from business activities. No income statement is available, but given the negative equity and heavy short-term liabilities, cash flow from operations is probably insufficient to meet debt obligations without continued director funding.

4. Monitoring Points:

• Improvement in net current assets and reduction in reliance on director loans
• Positive operating cash flow generation and profitability indicators
• Timely settlement of trade creditors and tax liabilities
• Any subsequent equity injections or external financing to strengthen the balance sheet
• Changes in directors’ conduct or control that might affect credit risk