Company Number: SC736419

Analysis Date: 2025-07-29 13:56 UTC

1. Credit Opinion: DECLINE
   Buckingham B & B Ltd’s most recent financials show a significant deterioration in liquidity and net asset position. The company moved from a positive net current asset position of £54k in 2023 to a negative £25k in 2024, and correspondingly net assets swung from positive £53k to negative £25k. This indicates an inability to meet short-term liabilities with current assets and a balance sheet insolvency. Given these red flags and the absence of audit or further financial detail, the company’s capacity to service debt or honor credit facilities is highly questionable at this stage.

2. Financial Strength
   The balance sheet reflects a weakening financial position over the last year. Current liabilities nearly doubled relative to current assets, driving negative working capital. The negative net assets position indicates cumulative losses or capital erosion. The company remains small in scale (micro-entity), with limited fixed asset base or equity buffer to absorb shocks. No retained earnings or reserves are evident, implying limited financial resilience.

3. Cash Flow Assessment
   The sharp decline in current assets from £132.5k to £16.2k suggests cash or receivables have been substantially depleted. Coupled with increased creditors, the company likely faces cash flow stress and limited liquidity to fund ongoing operations or debt repayments. The static number of employees (4) points to no contraction in payroll costs despite financial deterioration, which may exacerbate cash constraints. No cash flow statement is provided, but working capital trends are unfavorable.

4. Monitoring Points

• Monitor quarterly cash flow statements and bank balances for liquidity improvements or further deterioration.
• Watch for any restructuring or capital injections to restore net assets and working capital.
• Track payment history on trade creditors and any defaults or late payments.
• Review management commentary or strategic plans addressing financial recovery.
• Confirm no director or shareholder actions indicating distress (e.g., disqualifications, resignations).