Company Number: 14152012

Analysis Date: 2025-07-29 14:25 UTC

1. Credit Opinion: DECLINE
   BURA LIMITED shows an extremely weak financial position with net assets barely positive at £908 for the year ending June 2024. The company is highly leveraged with long-term creditors almost equal to fixed assets (£187,790 vs £187,805), indicating the business is effectively financed by debt, leaving minimal equity buffer. The micro-entity scale and minimal working capital of £893 suggest limited liquidity to meet short-term obligations comfortably. Given these factors, the company may struggle to service additional credit facilities or absorb financial shocks without external support.

2. Financial Strength:
   The balance sheet reflects a fragile capital structure. Fixed assets have slightly decreased from £190,532 to £187,805 over the last year, while long-term liabilities have reduced marginally from £190,834 to £187,790. Current assets have increased marginally but remain low at £6,403, and current liabilities are similar in size. The company maintains a positive but negligible net asset position (£908), indicating minimal shareholder equity and high financial risk. There is no visible profit or retained earnings accumulation, suggesting no substantive internal capital generation.

3. Cash Flow Assessment:
   Current assets versus current liabilities yield a small net current asset position of £893, indicating very tight liquidity with minimal working capital. The decline in employees from 2 to 1 may reflect cost-cutting or downsizing to preserve cash. The absence of cash flow statement data limits precise liquidity analysis, but the minimal working capital and high leverage imply cash flow constraints. The company's ability to cover operating costs, debt service, and unexpected expenses appears limited, posing a risk to ongoing operational stability.

4. Monitoring Points:

• Watch for any deterioration in net assets or working capital that could push the company into negative equity or liquidity shortfalls.
• Monitor creditor balances and repayment terms, especially long-term liabilities nearing maturity.
• Track changes in employee numbers and operational scale as indicators of business contraction or distress.
• Review any new financial filings or management commentary for plans addressing capital structure or cash flow improvements.
• Keep an eye on payment history and any overdue filings or credit defaults.