BAXTER ROAD FREEHOLD LIMITED

Executive Summary

Baxter Road Freehold Limited exhibits a weak financial position characterized by negative net assets and significant current liabilities exceeding current assets. The company’s minimal cash reserves and negative working capital raise serious concerns about its short-term liquidity and ability to service debt. Given these factors, credit facilities are not recommended without substantial improvement in financial metrics or additional security.

BAXTER ROAD FREEHOLD LIMITED - Analysis Report

Company Number: 13671315

Analysis Date: 2025-07-29 20:58 UTC

1. Credit Opinion: DECLINE
   Baxter Road Freehold Limited shows a weak financial position with persistent net current liabilities and negative shareholders' funds. The company’s net liabilities increased from -£17,813 in 2022 to -£47,187 in 2023, indicating deteriorating equity. Current liabilities significantly exceed current assets, resulting in a negative working capital position. Despite owning tangible fixed assets valued at £1.32 million, the company’s cash is minimal (£890), raising concerns about its ability to meet short-term obligations. Without evidence of positive cash flow or profitability, and given the large current liabilities, the risk of default on credit facilities is high.

2. Financial Strength:
   The company’s balance sheet is under strain. Fixed assets of £1.32 million (freehold property) provide collateral value but are illiquid. Current liabilities are over £1 million against negligible current assets, which creates a working capital deficit of approximately £346k. Shareholders’ funds are negative, indicating accumulated losses and insufficient equity buffer. The company has no reported depreciation, and no indication of income or profit reserves. This financial structure signals poor capital adequacy and solvency concerns.

3. Cash Flow Assessment:
   Cash reserves are minimal (£890), insufficient to cover even a small fraction of current liabilities (£1,021,229). The persistent negative net current assets reflect potentially stretched liquidity. No employees are reported, suggesting minimal operational outgoings, but lack of turnover or profit data limits confidence in cash generation. The company relies heavily on long-term liabilities and fixed assets without evident liquid resources or operating cash inflows to service debt or working capital needs.

4. Monitoring Points:

• Track changes in net current assets and cash balances to detect improvement or further deterioration in liquidity.
• Monitor the company's ability to reduce current liabilities or refinance long-term debts.
• Watch for any changes in profitability or cash flow from operations to assess credit risk trend.
• Review any capital injections or restructuring efforts to restore positive equity.
• Keep an eye on director conduct and any changes in significant control that might affect business stability.