Company Number: 12577093

Analysis Date: 2025-07-20 13:42 UTC

1. Credit Opinion: DECLINE
   Bourne Valley Ltd demonstrates a weak financial position with significant and persistent net liabilities (£14,098 at 30/04/2024) and negative working capital (-£17,009). The company depends heavily on director loans (£18,820) to maintain operations without formal agreements, indicating a fragile funding structure. The absence of trading profits and continued erosion of net assets over three years raises serious concerns about the company’s ability to service external debt or new credit facilities. Without tangible improvement or formalized funding, extending credit would be highly risky.

2. Financial Strength:
   The balance sheet shows minimal fixed assets (£4,564) and very low current assets (£1,812), overshadowed by current liabilities of £18,821. The company’s net asset position is negative and worsening year-on-year, reflecting ongoing losses or accumulated deficits. Shareholder funds are negative, implying the company’s equity is fully impaired. The micro-entity filing status limits the availability of detailed profit and loss data but the trend in net liabilities suggests continued operational losses.

3. Cash Flow Assessment:
   The working capital deficit of £17,009 indicates the company cannot meet short-term obligations from current assets, relying instead on director loans. There is no evidence of cash reserves or positive operating cash flow. The reliance on director funding without formal loan agreements highlights liquidity risk and potential difficulties in meeting creditor demands or unforeseen expenses.

4. Monitoring Points:

• Director loan balances and any formalization of these arrangements.
• Changes in working capital and current asset levels, especially cash and receivables.
• Any improvements in profitability or positive cash flow from operations.
• Filing of full accounts including profit and loss to clarify ongoing trading performance.
• Management actions to reduce liabilities or raise external finance.