BRISTOL NOTION LIMITED

Executive Summary

Bristol Notion Limited is currently in a weak financial position with negative net assets and significant working capital deficits. The company’s liquidity and cash flow are insufficient to cover liabilities, and there is no evidence of financial improvement or profitability. Given these factors, credit extension is not advisable at this time without substantial remedial action or additional security.

BRISTOL NOTION LIMITED - Analysis Report

Company Number: 14043606

Analysis Date: 2025-07-20 16:15 UTC

1. Credit Opinion: DECLINE

Bristol Notion Limited demonstrates significant financial distress as evidenced by persistent and increasing net current liabilities and negative net assets. The company has been operating with a deficit in working capital since inception, with net current liabilities worsening from £64,180 in 2023 to £44,549 in 2024, albeit slightly improved. The absence of fixed assets in the latest period (2024) compared to the previous year suggests asset disposals or write-offs, weakening the balance sheet further. Given the company’s micro-entity status and limited operating history (incorporated in 2022), there is insufficient evidence of profitability or cash generation to meet debt obligations. The director is a sole controller, and no additional management depth or financial backing is apparent. Overall, the company’s financial position and cash flow prospects do not support extending credit at this stage.

2. Financial Strength:

• Negative net assets of £44,549 as at 30 April 2024 indicate the company’s liabilities exceed its assets, signaling insolvency on a balance sheet basis.
• Current liabilities (£44,786) far exceed current assets (£237), resulting in a severely negative working capital position.
• Fixed assets were £28,672 in 2023 but reduced to zero in 2024, indicating asset disposals or impairments.
• Shareholders’ funds are negative and have deteriorated from £35,508 in 2023 to £44,549 in 2024.
• The company operates within the micro-entity category, limiting disclosure but confirming very small scale and minimal asset base.

3. Cash Flow Assessment:

• Extremely limited current assets (mainly cash or short-term receivables) of £237 against current liabilities of £44,786 suggests acute liquidity constraints.
• Negative net current assets imply insufficient short-term resources to cover immediate obligations.
• No indication of profitable trading or cash inflows to reverse the working capital deficit.
• The company employs only one person (the director), limiting overhead but also signaling limited operational scale or revenue generation.
• Absence of audit or external verification reduces confidence in reported figures but micro-entity exemption is standard.

4. Monitoring Points:

• Monitor timely filing of accounts and confirmation statements to assess ongoing compliance and operational status.
• Watch for any capital injections or restructuring that could improve the balance sheet.
• Track changes in net current assets and net liabilities in future filings.
• Assess any business model changes, new contracts, or management changes that might enhance creditworthiness.
• Observe director conduct and any adverse regulatory or insolvency notices.