C E BARKER TRAVEL LIMITED

Executive Summary

C E Barker Travel Limited shows recent financial deterioration with negative net assets and working capital deficits, relying heavily on director loans for liquidity. While operational compliance remains intact, the company’s weak balance sheet and cash position warrant conditional credit approval with stringent monitoring of cash flow and capital restoration efforts. Ongoing scrutiny of director funding and working capital improvements is essential to mitigate credit risk.

C E BARKER TRAVEL LIMITED - Analysis Report

Company Number: 13192052

Analysis Date: 2025-07-29 16:38 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   C E Barker Travel Limited presents a mixed credit profile. The company has experienced a significant deterioration in net assets and working capital over the past year, moving from positive net assets of £1,787 and net current assets of £1,599 in 2024 to negative net assets of £1,354 and net current liabilities of £1,495 in 2025. This points to recent financial stress. However, the company remains active with no overdue filings, indicating management compliance and operational continuity. The director's loan account has increased materially, suggesting reliance on director funding to support liquidity. Credit facilities may be approved conditionally, subject to close monitoring of cash flow and capital structure improvements.

2. Financial Strength: Weakening Balance Sheet
   The balance sheet shows a small fixed asset base (£141) and very limited share capital (£100). The sharp swing from positive to negative net assets and net current assets in 2025 is concerning. The increase in current liabilities (notably director's loan account rising from £1,719 to £7,817) and a decline in cash reserves from £8,756 to £5,167 reduces financial flexibility. The company’s equity has eroded, indicating accumulated losses or withdrawals exceeding retained earnings. This weak capital position limits buffer against financial shocks.

3. Cash Flow Assessment: Tight Liquidity and Working Capital Deficit
   Cash at bank declined by over 40% in the latest year, and net current assets moved from a healthy positive to a working capital deficit, indicating potential liquidity strain. Debtors increased but remain modest (£1,807), which may reflect limited trade receivables exposure but also a small scale operation. The increased director's loan account implies external funding is currently required to meet liabilities. The overall working capital position suggests the company may struggle to meet short-term obligations without continued director support or improved cash inflows.

4. Monitoring Points:

• Track monthly cash flow and liquidity ratios to ensure ongoing ability to meet short-term liabilities.
• Monitor the director’s loan account movements and repayment plans to assess reliance on director funding.
• Watch for improvements in net current assets and net asset position in subsequent accounts.
• Review turnover and profitability trends for signs of operational recovery or further deterioration.
• Confirm timely filing of accounts and confirmation statements to mitigate compliance risk.