BUTTONED UP LIMITED

Executive Summary

BUTTONED UP LIMITED is currently in a weak financial position with negative net assets and significant long-term liabilities exceeding its assets. Although short-term liquidity appears adequate, the company relies heavily on creditor funding, raising concerns over its ability to sustain operations and repay debts without additional capital or improved profitability. Given these factors, credit facilities are not recommended at this time.

BUTTONED UP LIMITED - Analysis Report

Company Number: 14174176

Analysis Date: 2025-07-20 15:11 UTC

1. Credit Opinion: DECLINE. Despite being current on filings and having some net current assets, the company exhibits a significant imbalance in its balance sheet with liabilities exceeding assets by £92,219 as of June 2024. This indicates negative net worth and potential solvency concerns. The presence of substantial long-term creditors suggests reliance on external funding to sustain operations, which may not be sustainable without stronger financial performance or equity injection. The company’s micro-entity status and limited operating history since June 2022 also limit the confidence in its creditworthiness.

2. Financial Strength: The company’s net assets decreased from a negative £44,016 in 2023 to a negative £92,219 in 2024, showing a worsening financial position. Fixed assets declined slightly, while current assets increased from £19,233 to £29,702, improving liquidity somewhat. However, current liabilities are modest (-£5,031), but long-term liabilities increased significantly from -£86,328 to -£140,980. This large amount of long-term debt puts pressure on the balance sheet and indicates high leverage.

3. Cash Flow Assessment: Net current assets improved from £15,570 to £24,671, which is a positive sign for short-term liquidity and working capital management. The company has only one employee, suggesting a low fixed cost base. However, the micro-entity accounts do not provide a detailed cash flow statement, and the reliance on long-term creditors to continue funding into 2025 raises concerns about ongoing cash flow sufficiency to meet obligations without further financing or improved operating cash generation.

4. Monitoring Points:

• Monitor long-term creditor arrangements and any changes in funding willingness.
• Track net asset position and whether losses continue to accumulate.
• Watch cash flow from operations and whether net current assets continue to improve.
• Review any changes in ownership or additional capital injections.
• Observe market conditions in the specialised clothing retail sector and any operational progress.