BLACK WHIPPET LIMITED

Executive Summary

BLACK WHIPPET LIMITED is currently showing negative net assets and a significant liquidity mismatch, raising high solvency and liquidity risks. The company is up to date with statutory filings and has increased fixed assets, but persistent losses and negative equity suggest operational and financial challenges. Further detailed financial and operational due diligence is recommended to assess ongoing viability and risk mitigation.

BLACK WHIPPET LIMITED - Analysis Report

Company Number: SC711657

Analysis Date: 2025-07-20 11:02 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net assets (shareholders funds) of £29,736 as at 31 October 2023, worsening from a negative £39,608 the previous year, indicating insolvency on a balance sheet basis. Current liabilities significantly exceed current assets, suggesting liquidity stress.

2. Key Concerns:

• Negative net assets imply the company’s liabilities exceed its assets, a solvency red flag.
• Current liabilities (£356,538) are more than four times current assets (£75,783), indicating poor short-term liquidity and potential cash flow difficulties.
• The company has sustained losses over at least two years (negative shareholders funds), raising questions about operational viability and sustainability.

3. Positive Indicators:

• The company is current with all filing obligations (accounts and confirmation statements), suggesting regulatory compliance and governance discipline.
• Fixed assets increased significantly from £68,444 to £251,019, which may indicate recent investment in property or equipment supporting business operations.
• The director and sole significant controller is clearly identified, providing transparency on governance.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets to confirm they are not overstated and can support business operations or refinancing.
• Review cash flow statements and profit & loss accounts (not provided here) to understand operational cash generation or losses.
• Clarify the composition and timing of current liabilities to assess liquidity pressures and creditor relationships.
• Assess business model sustainability, given persistent negative equity and whether losses are expected to continue or are temporary.
• Enquire about any contingent liabilities or off-balance-sheet risks not disclosed in micro-entity accounts.
• Confirm if any external funding or guarantees are in place to support the business in the short term.