Company Number: 12918324

Analysis Date: 2025-07-20 13:10 UTC

1. Credit Opinion: DECLINE
   Bourse & Bazaar Foundation shows persistent and significant negative net assets and current liabilities exceeding current assets by over £114k as of the latest accounts. The company is reliant on grant income to fund operations and has no equity capital, indicating weak financial resilience and limited ability to meet short-term obligations from cash or receivables. The absence of shares and reliance on grants introduces risk around cash flow stability. Given the ongoing net liability position and dependence on external funding, extending credit is not advisable at this stage.

2. Financial Strength:
   The balance sheet reveals a deteriorating financial position from incorporation in 2020 through 2024, with net liabilities worsening from approximately £64k to £115k. Current liabilities consistently exceed current assets by a large margin, and cash reserves have drastically declined to £59. The company holds no fixed assets or long-term investments. Deferred grant income constitutes a significant portion of creditors, reflecting restricted funding tied to performance conditions rather than freely deployable cash. Shareholders funds are negative, confirming an absence of financial buffer.

3. Cash Flow Assessment:
   Liquidity is critically weak with only £59 in cash at year-end 2024, down from £8,543 the prior year, while current liabilities remain high (~£115k). The company’s working capital is substantially negative (-£114,823), indicating inability to cover short-term debts without additional funding. Debtors have dropped to zero, suggesting limited incoming receivables. The company relies heavily on grant income, some of which is deferred, impacting immediate cash availability. Overall, cash flow risk is high, and the company may struggle to meet creditor demands or new credit facilities.

4. Monitoring Points:

• Timely receipt and recognition of grant income and any consultancy revenue
• Ability to reduce current liabilities or convert deferred grant income to realized income
• Changes in cash balances and working capital position in subsequent periods
• Any capital injections or alternative financing arrangements to improve liquidity
• Directors’ commentary on going concern status and funding outlook in future filings