BURBOSA LTD

Executive Summary

BURBOSA LTD is an active but very small-scale micro-entity with minimal turnover and net assets. The company lacks financial strength and cash flow to support credit facilities at this stage. Credit extension is not recommended unless there is clear evidence of business growth and improved profitability.

BURBOSA LTD - Analysis Report

Company Number: 13436116

Analysis Date: 2025-07-20 16:50 UTC

1. Credit Opinion: DECLINE

BURBOSA LTD presents as a micro-entity with very limited trading activity and minimal financial resources. Turnover is negligible (£776 in 2024) and there is no evidence of scale or profitability trends that would support debt servicing capacity. The company reports nominal net assets (£291) and no current liabilities, indicating minimal operational scale and limited working capital. Absence of staff and fixed assets further imply a startup or dormant operational status rather than a growing business. Given these factors, the company lacks the financial strength and cash flow to service credit facilities reliably. Without significant improvement or external support, extending credit poses a high risk of non-repayment.

2. Financial Strength:

The balance sheet shows minimal assets and no liabilities, with net assets increasing slightly from £156 in 2023 to £291 in 2024. Shareholders’ funds mirror net assets, confirming no external debt. No fixed assets are held, and current assets are minimal (£291), primarily cash or equivalents. The company has no borrowings, which reduces risk but also limits financial flexibility. Overall, the financial structure is extremely weak due to the very small scale of operations and lack of tangible assets or reserves.

3. Cash Flow Assessment:

Operating cash flows are minimal, reflected by the very low turnover and small net profit (£181). No staff costs or material expenses were reported, suggesting limited business activity. The absence of current liabilities is positive from a liquidity perspective but also indicates no supplier credit or trade payables that could be leveraged. Working capital is positive but insignificant. The company’s cash flow generation is insufficient to support any meaningful debt service or operational expansion.

4. Monitoring Points:

• Turnover growth: Any signs of increased revenue beyond micro-entity thresholds.
• Profitability trends: Sustained positive net income to build reserves.
• Cash balances: To ensure liquidity to meet short-term obligations.
• Changes in liabilities: Introduction of trade creditors or borrowings.
• Director activity: Continued involvement and governance by Mrs. Jolanta Szymczak.
• Industry developments: Particularly in management consultancy and IT sectors impacting business prospects.