Company Number: 13485164

Analysis Date: 2025-07-19 12:32 UTC

1. Credit Opinion: DECLINE
   Better Mansions Limited exhibits a weak financial position with persistent net liabilities and significant negative working capital. The company’s current liabilities far exceed current assets, indicating liquidity stress and short-term repayment challenges. Despite holding fixed assets valued at £632,009, the company’s equity remains negative (£-8,050 as of 2024), a slight improvement from prior years but still in deficit. The company’s micro-entity status and minimal employee base suggest limited operational scale and resources to manage financial pressures. Given these factors, the company poses a high credit risk and is unlikely to service new debt without significant improvement in cash flow and equity.

2. Financial Strength:
   The balance sheet shows fixed assets of £632,009 consistently over recent years, indicating asset stability. However, the net current assets are deeply negative (£-246,309), driven by current liabilities of £393,750 against minimal current assets (~£4,160). The company also carries long-term creditors of £393,750, resulting in net liabilities on the balance sheet. Shareholders' funds remain negative, reflecting accumulated losses or capital deficits. Overall, the financial structure is fragile with heavy reliance on creditors, limited liquidity, and negative equity undermining financial resilience.

3. Cash Flow Assessment:
   Liquidity is a major concern, with current liabilities nearly 95 times greater than current assets. Negative working capital indicates potential difficulties in meeting short-term obligations. The company’s average staffing level of 1 employee and micro-entity status suggest limited operational complexity but also constrained cash inflows. There is no evidence of cash reserves or improvements in receivables/debtors. This points to a tight cash flow position and limited headroom for absorbing financial shocks or servicing additional debt.

4. Monitoring Points:

• Monitor changes in net current assets and current liabilities to assess improvements in liquidity.
• Watch for any capital injections or restructuring that might restore positive equity.
• Track debtor and creditor turnover periods to evaluate working capital management.
• Review operational income trends to identify potential for cash flow improvement.
• Keep an eye on director compliance and any changes in ownership or control that might signal strategic shifts.