BOUNDARY BELFAST LTD

Executive Summary

Boundary Belfast Ltd is a newly incorporated micro-entity with limited financial depth and a thin equity base supported by long-term creditors. The company shows early signs of operational activity but has a negative working capital position indicating potential short-term liquidity risks. Conditional credit approval is advised, subject to ongoing close monitoring of cash flow, creditor management, and financial performance improvements.

BOUNDARY BELFAST LTD - Analysis Report

Company Number: NI692602

Analysis Date: 2025-07-29 13:14 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Boundary Belfast Ltd is a very young micro-entity, incorporated in late 2022, with limited financial history and small scale operations. The company shows positive net assets but has a notable long-term creditor balance (£11,009) compared to minimal current assets (£1,211). The net current assets figure is negative (£-1,944), indicating potential short-term liquidity pressure. However, absence of overdue filings and a single director owning 100% control suggests stable governance. Approval is recommended with conditions such as close monitoring of cash flows and creditor management, and requirement for updated financials to confirm improving liquidity.

2. Financial Strength: The balance sheet reflects modest fixed assets (£14,057) and very low current assets (£1,211). Current liabilities are £3,155 but there is a significant creditor balance falling due after one year (£11,009), which could indicate loan or deferred payment obligations. The net assets total £1,104, a thin equity base consistent with a start-up. Shareholder funds match net assets, implying no hidden liabilities. Overall, the financial strength is weak but not unusual for a micro business in its first year; the capital structure is highly leveraged on long-term creditors.

3. Cash Flow Assessment: The negative net current assets position (-£1,944) signals working capital constraints. With only two employees and limited current assets, the company may face challenges meeting immediate short-term obligations without additional cash inflows. The low current asset base also suggests minimal cash reserves or receivables. Cash flow from operations and timing of creditor payments will be critical to watch. The absence of overdue accounts suggests some operational discipline, but liquidity risk remains a concern.

4. Monitoring Points:

• Liquidity ratios and cash flow statements in future accounts to assess ability to service short-term debts.
• Movement in long-term creditors to understand debt repayment schedules and refinancing risks.
• Profitability trends and growth in asset base to evaluate business scalability.
• Stability and conduct of sole director to ensure ongoing governance and financial stewardship.
• Timeliness of future filings and compliance indicators.