BRISTOL WEST LTD

Executive Summary

Bristol West Ltd is an early-stage micro-entity with modest net assets but significant current liabilities, indicating liquidity constraints. The company’s low working capital and limited trading history warrant cautious credit terms with strong monitoring of cash flow and financial performance. Conditional approval is recommended, subject to safeguards such as collateral or guarantees and ongoing financial reviews.

BRISTOL WEST LTD - Analysis Report

Company Number: 14498971

Analysis Date: 2025-07-20 16:57 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Bristol West Ltd is a very young micro-entity with limited financial history. The company shows positive net assets (£10,839) as of the latest accounts (March 2025), reflecting some fixed assets value (£76,959) and a modest current asset base. However, it has significant current liabilities (£67,392) exceeding current assets, resulting in a net current liability position (-£66,120), which weakens short-term liquidity and raises concerns about working capital sufficiency. The business is active with no overdue filings and has reputable directors, but the short operating history and current liability structure suggest cautious credit terms, possibly requiring collateral or guarantees and close monitoring.

2. Financial Strength:
   The balance sheet indicates the company has invested in fixed assets, which supports some asset backing. Shareholders’ funds are positive but relatively small (£10,839), consistent with a micro-entity profile. The large current liabilities compared to current assets imply potential pressure on cash to meet short-term obligations. The company’s equity base is low and the working capital deficit highlights a need for improved liquidity management. The lack of profit and loss detail or cash flow statements limits deeper analysis but suggests the company is still in early development or asset acquisition phase.

3. Cash Flow Assessment:
   The current asset base is minimal (£1,272) relative to current liabilities, resulting in a negative net working capital position. This suggests possible reliance on external financing or shareholder funding to meet immediate obligations. The average employee count of 1 indicates a lean operation, reducing overheads but also limiting internal cash generation capacity. Without evidence of positive cash inflows or operating profits, liquidity risk is elevated. Cash flow forecasting and covenant compliance should be required as part of credit approval.

4. Monitoring Points:

• Regular updates on cash flow and working capital position to ensure current liabilities do not escalate further.
• Progress on revenue generation and profitability to improve net current assets and equity base.
• Management of fixed assets and potential depreciation or impairment risks.
• Director and ownership changes or related party transactions given significant control by London West Capital Ltd and individuals.
• Timely submission of accounts and confirmation statements to maintain compliance and transparency.