Company Number: 13558023

Analysis Date: 2025-07-19 12:53 UTC

1. Credit Opinion: DECLINE
   BLK CAB COFFEE LTD demonstrates weak financial health with persistent net liabilities and negative shareholders' funds. Despite recent acquisition of fixed assets, the company shows a significant working capital deficiency (£112k negative as of 31 March 2025) and continues to operate with negative net assets (£691 deficit). The lack of turnover history and ongoing negative equity raises concerns about its ability to service debt or new credit facilities. Without evidence of operational revenue or profitability, the risk of default is elevated.

2. Financial Strength:
   The balance sheet reveals total fixed assets of £144,302, which is a positive sign of investment in tangible assets. However, the current liabilities significantly exceed current assets, resulting in a negative net current asset position of £112,186. Furthermore, the company holds net liabilities overall due to accrued deferred income and long-term creditors. Shareholders funds remain negative but have improved from prior years (from -£11,457 to -£691), indicating some reduction in accumulated losses but still reflecting a fragile equity base.

3. Cash Flow Assessment:
   Current assets include a notable increase in cash or equivalents from a minimal £100 to over £100,000, which may reflect a recent capital injection or reclassification. However, this is overshadowed by substantial current liabilities nearing £213,000, indicating potential liquidity strain. The negative working capital position suggests cash flow is insufficient to cover short-term obligations, increasing the risk of payment delays or default under credit facilities.

4. Monitoring Points:

• Turnover generation and profitability: Monitor any revenue recognition or profit improvements in future filings.
• Working capital trends: Watch for reductions in current liabilities or increases in current assets to improve liquidity.
• Director loan accounts or related party transactions that may affect cash flow or capital structure.
• Compliance with filing deadlines and any changes in director appointments or control.