BULLEUK RFD LTD

Executive Summary

Bulleuk RFD Ltd is a start-up retail business showing negative equity and working capital deficits in its first reported financial year, with no employees and limited financial history. The company currently lacks the financial strength and cash flow capability to support credit facilities or debt obligations. Credit approval is not recommended until the company demonstrates improved liquidity, positive net assets, and operational cash generation.

BULLEUK RFD LTD - Analysis Report

Company Number: 15112536

Analysis Date: 2025-07-29 19:12 UTC

1. Credit Opinion: DECLINE
   Bulleuk RFD Ltd is a newly incorporated entity (since September 2023) operating in retail sales of sports goods and related products. The latest financials show net current liabilities of £337 and negative shareholders' funds of £337, indicating the company is currently undercapitalized and has a working capital deficit. The absence of trading history beyond the first accounting period and no employees suggest limited operational scale or revenue generation to date. The negative equity and working capital position pose a significant risk to debt servicing capability. Without evidence of profitability or positive cash flows, the company is not currently creditworthy for lending or extended trade credit.

2. Financial Strength:

• Total assets primarily consist of stock valued at £750.
• Current liabilities amount to £1,087, including bank loans/overdrafts of £727 and accrued expenses of £360.
• Net current assets are negative at £-337, resulting in negative net assets and shareholders' funds of £-337.
• The company is small, with a minimal share capital of £100 and no employees.
• No audit was required; financials are unaudited and based on historical cost accounting.
  This financial structure reflects a fragile balance sheet with insufficient capital to support operations or absorb losses.

3. Cash Flow Assessment:

• The company has no reported cash or equivalents disclosed explicitly; cash position is unclear but likely constrained given negative working capital.
• Negative net current assets indicate potential liquidity pressure in meeting short-term obligations.
• Bank overdrafts of £727 form a significant portion of current liabilities, implying reliance on external short-term funding.
• No employees or operational scale reported may limit cash outflows currently, but also suggests minimal incoming cash flow from sales or operations.
• The company’s ability to generate positive operating cash flow is unproven and uncertain at this stage.

4. Monitoring Points:

• Track improvements in working capital and net assets in subsequent accounts.
• Monitor cash flow statements and bank facility usage to assess liquidity trends.
• Review turnover growth and profitability once income statements are available to evaluate operational progress.
• Watch for changes in directors’ or shareholders’ funding injections or capital restructuring that may improve financial stability.
• Confirm timely filing of future accounts and confirmation statements as indicators of ongoing compliance and management diligence.