BOUNCE AROUND CASTLE HIRE LIMITED

Executive Summary

Bounce Around Castle Hire Limited is a very small, early-stage business with a clean balance sheet and positive net assets but limited revenue and cash flow currently. Credit approval is recommended on a conditional basis, requiring close monitoring of trading performance and liquidity improvements before increasing credit exposure. The company’s modest financial footprint and straightforward business model present low financial risk but constrained capacity to scale rapidly.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

BOUNCE AROUND CASTLE HIRE LIMITED - Analysis Report

Company Number: 14284081

Analysis Date: 2025-07-29 20:11 UTC

  1. Credit Opinion: CONDITIONAL APPROVAL
    Bounce Around Castle Hire Limited is a very young and small private limited company operating in a niche service industry (bouncy castle hire). The company shows a positive net asset base and no liabilities, indicating a clean balance sheet. However, turnover is extremely low (£1,800 in 2023) and there is no evidence of significant revenue growth yet. The company relies on owner-directors working without employees, which limits operational capacity. Cash reserves are minimal but positive. Given the small scale and early stage, credit approval should be conditional on monitoring improved trading performance and cash flow generation before extending larger credit facilities.

  2. Financial Strength:
    The balance sheet shows modest fixed assets (£5,800) and a small cash balance (£680) with no current or long-term liabilities. Net assets and shareholders’ funds have increased from £4,485 in 2023 to £5,920 in 2024, reflecting retained profits reinvested into the business. The absence of any debt indicates low financial risk, but also limited capital structure flexibility. The company’s small asset base and minimal working capital restrict its ability to absorb unexpected financial shocks.

  3. Cash Flow Assessment:
    The company’s current assets consist solely of cash, with no trade debtors or stock, and zero current liabilities. The net current assets position is positive but marginal at £680, indicating very limited liquidity buffer. The business model involves receiving deposits upfront and balance payments on service delivery, reducing credit risk from customers but also limiting cash flow volume. The lack of employees keeps fixed costs low. Cash flow is currently minimal but stable; however, scaling up operations will require stronger cash generation.

  4. Monitoring Points:

  • Turnover growth: Watch for consistent increases in revenue to justify credit extension.
  • Profit margins and reinvestment: Assess how profits are being used to build sustainable cash reserves and asset base.
  • Cash balance trends: Ensure liquidity remains positive and grows to support trading needs.
  • Operational scale: Monitor if the company starts employing staff or expanding services, which may impact working capital needs.
  • Payment patterns: Confirm timely receipt of deposits and final payments to mitigate receivables risk.

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