BIDDLES OF GUILDFORD LTD

Executive Summary

Biddles of Guildford Ltd exhibits significant financial stress with increasing current liabilities and negative net assets, raising concerns about its ability to meet obligations. Despite compliance with filing requirements and operational stability, the company’s deteriorating equity position warrants careful investigation before considering investment exposure.

BIDDLES OF GUILDFORD LTD - Analysis Report

Company Number: 12627948

Analysis Date: 2025-07-20 19:07 UTC

1. Risk Rating: HIGH
   The company shows persistent and worsening negative net current assets and shareholders’ funds over recent years, indicating a deteriorating financial position and potential solvency concerns.

2. Key Concerns:

• Negative net current assets of £40,116 as of May 2024, worsening from £8,106 deficit the previous year, indicating liquidity pressures.
• Shareholders’ funds have declined significantly to a negative £35,367, reflecting accumulated losses and potential erosion of capital.
• Current liabilities have increased substantially to £113,299, outpacing current assets and raising questions about the company’s ability to meet short-term obligations.

3. Positive Indicators:

• The company is current with statutory filings (accounts and confirmation statements), demonstrating compliance with regulatory requirements.
• The business has a stable number of employees (8), suggesting operational continuity.
• Directors have retail management experience, which is aligned with the company’s retail sector (sale of newspapers and stationery).

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to assess if any are overdue or subject to enforcement actions.
• Assess cash flow statements and bank balances (not provided) to better understand liquidity and operational cash flows.
• Understand the reasons for the persistent losses and negative equity, including sales trends, margins, and cost structure.
• Review any director loans or related party transactions that might impact solvency.
• Confirm whether any contingent liabilities or off-balance-sheet risks exist.
• Evaluate market conditions and competitive position in the specialised retail sector to gauge business sustainability.