CANAL BRIDGE DEVELOPMENTS LIMITED

Executive Summary

Canal Bridge Developments Limited shows moderate solvency with positive net current assets and shareholder funds but faces liquidity challenges evidenced by a significant drop in cash and high director loan balances. The company's operational scale appears limited, warranting further review of cash flow stability and ongoing project activity. Regulatory compliance is up to date, providing some assurance on governance standards.

CANAL BRIDGE DEVELOPMENTS LIMITED - Analysis Report

Company Number: 13644032

Analysis Date: 2025-07-29 16:43 UTC

1. Risk Rating: MEDIUM
   The company exhibits a modest net current asset position and positive shareholders' funds, indicating some solvency cushion. However, the significant reduction in cash and current liabilities compared to the prior year, alongside a substantial directors' current account creditor balance, raises liquidity and related-party funding concerns.

2. Key Concerns:

• Liquidity Pressure: Cash reserves declined sharply from £792k to £226k year-on-year, while current liabilities remain high at nearly £397k, implying potential short-term cash flow constraints.
• Directors' Current Account Liability: A large creditor balance (£290k) owed to directors suggests reliance on director funding, which may not be sustainable or could be called in, impacting liquidity.
• Operating Scale and Activity: The company has no employees currently and minimal reported trade debtors, which may question operational sustainability and revenue-generating capacity.

3. Positive Indicators:

• Positive Net Current Assets: Despite a decrease, net current assets remain positive (£54k), indicating the company holds more current assets than immediate liabilities.
• Compliance and Filing: The company is active, current on accounts and confirmation statement filings, with no overdue returns or accounts, showing regulatory compliance.
• Strong Shareholder Control: The significant controlling interest held by Mr. Stephen Balint provides a stable ownership structure and potentially committed management.

4. Due Diligence Notes:

• Investigate the nature and terms of the directors' current account creditor balance to assess repayment risk and potential impact on liquidity.
• Review cash flow forecasts and working capital management to understand if the company can meet short-term obligations without additional financing.
• Assess operational activities, contract pipeline, or project status given the industry classification (building project development) and absence of employees, to gauge future revenue prospects.
• Confirm there are no undisclosed contingent liabilities or regulatory issues that could impair financial stability.