Company Number: 12735331

Analysis Date: 2025-07-29 15:07 UTC

1. Credit Opinion: DECLINE
   CABSTAR LIMITED’s financial profile shows a significant and worsening net liability position, with net assets deteriorating from £244 negative in 2022 to -£4,838 in 2023. The company’s balance sheet is weak, with current liabilities far exceeding current assets, indicating poor liquidity and an inability to cover short-term obligations. This raises serious concerns about debt servicing capability and financial stability. Additionally, the overdue confirmation statement filing signals governance and compliance weaknesses. The company operates in taxi operations, a sector susceptible to economic fluctuations, and with only one employee and minimal fixed assets, it lacks operational scale and resilience. Management has not demonstrated effective financial stewardship to reverse the decline.

2. Financial Strength:
   The company’s net current liabilities worsened from -£1,182 in 2022 to -£5,308 in 2023, and net assets moved from -£244 to -£4,838, reflecting deteriorating solvency. Fixed assets have halved over two years, suggesting asset disposals or depreciation without replacement. Shareholders’ funds are negative, indicating accumulated losses or capital erosion. The micro-entity status limits detailed disclosure, but the available data clearly signals a financially distressed position.

3. Cash Flow Assessment:
   Current assets, primarily cash or receivables, are negligible (£7 in 2023), while current liabilities have surged to £5,315, implying a severe working capital deficit and liquidity shortfall. This mismatch suggests the company would struggle to meet short-term liabilities without additional financing or capital injection. Cash flow from operations is likely negative or insufficient, increasing credit risk.

4. Monitoring Points:

• Timely filing of statutory returns and accounts to assess ongoing compliance and management oversight.
• Changes in net working capital and liquidity ratios to detect improvement or further deterioration.
• Any capital injections or related party loans that might temporarily improve liquidity.
• Profitability trends and cash flow statements, if disclosed, to evaluate operational performance.
• Director actions or restructuring efforts aimed at stabilizing finances.