BLACK FOX ADVISERS LIMITED

Executive Summary

Black Fox Advisers Limited is currently financially fragile with negative working capital and net liabilities, relying heavily on director loans for liquidity. The company’s ability to meet its short-term obligations and service external credit is limited, warranting a decline of credit facilities at this stage. Close monitoring of cash flow, related-party funding, and profitability is essential to reassess creditworthiness in the future.

BLACK FOX ADVISERS LIMITED - Analysis Report

Company Number: 14253357

Analysis Date: 2025-07-20 14:11 UTC

1. Credit Opinion: DECLINE
   Black Fox Advisers Limited shows significant liquidity and solvency concerns. The company has negative net current assets of £38,855 and negative shareholders’ funds of £29,004 as of 31 July 2024. Current liabilities (£144,939) substantially exceed current assets (£106,084), indicating insufficient short-term resources to meet obligations. Additionally, the company owes a large amount (£116,547) to key management personnel, interest-free and repayable on demand, which presents a risk due to potential calls on liquidity. The absence of profitability disclosure and negative equity position raise doubts about financial sustainability and the ability to service external debt.

2. Financial Strength:
   The balance sheet is weak, with net liabilities of £28,904. Fixed assets are minimal (£9,951), and the company relies heavily on short-term funding, including related-party loans. Negative working capital and lack of retained earnings (losses reflected in the P&L reserve) suggest the company is in early development or distress. The small share capital (£100) provides little buffer against losses. There is no indication of external borrowings, but the large creditor balance to management indicates dependence on insider financing rather than external capital markets.

3. Cash Flow Assessment:
   Cash balances improved to £38,556 from £100 the prior year, but this remains modest relative to current liabilities. Debtors of £67,528 and prepayments of £45,893 may not be immediately convertible to cash, increasing liquidity risk. The sizeable creditor balance owed to directors and related parties creates contingent liquidity exposure. Overall, cash flow appears constrained and reliant on management support, limiting the company’s ability to meet unexpected demands or grow operations without additional capital injection.

4. Monitoring Points:

• Track improvements in working capital and reduction of negative net current assets.
• Monitor timely settlement of related-party loans and any changes in terms.
• Review future profitability and cash generation to support sustainability.
• Watch for any further capital injections or external financing arrangements.
• Keep an eye on directors’ conduct and related-party transactions for governance risks.
• Observe filing compliance and any changes in company status or financial health.