C B PASSMORE DEVELOPMENTS LTD

Executive Summary

C B Passmore Developments Ltd is a start-up construction company with significant financial weaknesses including negative net assets and working capital deficit, and high reliance on borrowings. The company’s current liquidity and financial position do not support credit approval. Close monitoring of cash flow and balance sheet developments is recommended should the company seek credit in the future.

C B PASSMORE DEVELOPMENTS LTD - Analysis Report

Company Number: NI691145

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

1. Credit Opinion: DECLINE

C B Passmore Developments Ltd is a recently incorporated company in the construction of domestic buildings sector. The company shows a shareholders' deficit of £17,767 and net current liabilities of £58,071 as of 30 September 2023, indicating negative net working capital and weak balance sheet liquidity. The company carries significant current borrowings (£202,794) with minimal cash reserves (£6,969) and debtors (£7,089), suggesting limited ability to service debt obligations in the short term. Given the negative net assets and working capital deficit in its first financial period, there is a substantial risk of insolvency or inability to meet creditor demands without additional capital injection or improved cash flow. The director is the sole owner and operator, which concentrates control but provides limited financial resilience. Therefore, credit facilities are not recommended at this time.

2. Financial Strength:

The company has tangible fixed assets of £40,304 and work-in-progress stock valued at £132,477, but these are outweighed by current liabilities of £204,606, mainly bank loans and overdrafts. The net liabilities position (-£17,767) reflects an equity deficiency. The balance sheet lacks a buffer to absorb operational shocks or downturns. The minimal share capital (£100) further limits the company’s financial strength. The absence of retained earnings and negative shareholder funds indicate that the company is at an early stage of development with significant financial risk.

3. Cash Flow Assessment:

Cash at bank is low at £6,969 relative to borrowings of £202,794, and debtors of £7,089 are modest, implying tight liquidity. The company is reliant on external borrowings to finance operations and work in progress. The negative net current assets position (-£58,071) signals working capital deficiency, which could impair the company’s ability to meet short-term liabilities and operational expenses. Without evidence of positive operating cash flow or additional capital contributions, liquidity risk is high.

4. Monitoring Points:

• Monitor quarterly cash flow statements for improvement in liquidity and cash conversion cycles.
• Track stock turnover and valuation of work in progress to ensure realizable value.
• Watch for additional capital injections or debt restructuring to improve net asset position.
• Review director’s payments and borrowing terms for signs of financial distress.
• Observe subsequent filings for any changes in company status or adverse credit events.