BARTON TECH SERVICES LTD

Executive Summary

Barton Tech Services Ltd exhibits a weakening financial position with negative net assets and poor liquidity, leading to a high risk of default on credit obligations. The company is a micro-entity with limited operational scale and insufficient working capital to cover current liabilities. Given these factors, credit facilities are not recommended without substantial financial restructuring or capital support.

BARTON TECH SERVICES LTD - Analysis Report

Company Number: 13631821

Analysis Date: 2025-07-20 14:27 UTC

1. Credit Opinion: DECLINE
   Barton Tech Services Ltd shows a deteriorating financial position with net liabilities of £2,462 as of 30 September 2024, reversing from net assets of £952 the prior year. The company is a micro-entity with minimal fixed assets and very limited current assets (£992) compared to current liabilities of £4,513, indicating a significant working capital deficit and liquidity strain. The negative net current assets and net liabilities suggest inability to cover short-term obligations, raising concerns about the company's capacity to service debt or meet commercial commitments. The company’s small scale and single employee status limit operational resilience. Without clear evidence of turnaround or additional capital injection, credit approval is not advisable.

2. Financial Strength: Weak
   The balance sheet shows a sharp reduction in fixed assets from £4,252 to £1,059 and rising current liabilities from £3,741 to £4,513, which together have driven net assets into negative territory. The company’s total net assets have declined to -£2,462, indicating accumulated losses or write-downs not offset by equity. Shareholders’ funds mirror net assets and are negative, pointing to erosion of capital. The minimal asset base and negative equity position reflect poor financial health and increased risk of insolvency if negative trends continue.

3. Cash Flow Assessment: Concerning
   Current assets at £992 are insufficient to cover current liabilities of £4,513, yielding a current ratio under 0.25, indicative of severe liquidity constraints. The negative net current assets (working capital) of -£3,521 imply the company may face difficulty meeting short-term liabilities without additional financing or operational improvements. With only one employee and limited fixed assets, the company likely lacks internal resources or collateral to support borrowing. This weak liquidity profile signals high risk of payment delays or default.

4. Monitoring Points:

• Track monthly cash flow and liquidity to detect worsening short-term payment capacity.
• Monitor any capital injections or shareholder loans that could restore net assets.
• Watch for improvements in current ratio and reduction in current liabilities.
• Review operational performance and contracts to assess revenue stability.
• Confirm timely filing of accounts and returns to avoid regulatory issues.