BLUE LILIES LIMITED

Executive Summary

Blue Lilies Limited demonstrates a fragile financial position with persistent negative equity and high creditor balances that undermine its ability to service debt. Liquidity is constrained and the company’s asset base has materially declined, raising significant credit risk. Credit facilities are not recommended until a clear turnaround in financial health is evidenced.

BLUE LILIES LIMITED - Analysis Report

Company Number: 12932451

Analysis Date: 2025-07-20 18:57 UTC

1. Credit Opinion: DECLINE
   Blue Lilies Limited exhibits significant financial distress with large negative net asset positions reported in the latest accounts. The company’s liabilities exceed assets substantially, indicating a weak balance sheet and limited capacity to service additional debt. Despite being operational and filing on time, the company’s ongoing negative equity and high creditor balances relative to assets suggest an elevated risk of default or insolvency. The absence of positive cash reserves and minimal current assets compared to current liabilities undermines short-term liquidity. Given the current financial structure and risk profile, credit approval is not recommended at this stage.

2. Financial Strength:
   The company’s fixed assets have decreased sharply from £1.33M in 2023 to approximately £294k in 2024, while current liabilities remain high at £471k. Total net assets are negative £169k, reflecting accumulated losses or write-downs that have eroded shareholder funds. The company’s balance sheet reveals a persistent overhang of long-term creditors exceeding asset coverage, which compromises solvency. Share capital is minimal (£100), indicating limited equity buffer. Overall, the financial position is weak, with insufficient asset backing and significant creditor exposure.

3. Cash Flow Assessment:
   Current assets are very low at £8,410 with current liabilities of £471,612, indicating poor working capital and liquidity constraints. The net current assets position is positive £8,410 according to the report, but this seems inconsistent given the liabilities figure provided; likely a reporting or classification issue. With only one employee and minimal current assets, the company likely relies heavily on external financing or related party support to meet obligations. Cash generation capacity appears limited, and the risk of cash flow shortfall is high.

4. Monitoring Points:

• Monitor changes in net assets and fixed asset valuations for signs of recovery or further impairment.
• Track current liabilities and creditor turnover to assess liquidity improvements or worsening.
• Review any changes in director or shareholder support, including capital injections or loan restructurings.
• Watch for timely filing of accounts and confirmation statements to gauge compliance and management stability.
• Observe industry risks in real estate letting and trading activities that may impact revenue streams.