Company Number: 13909847

Analysis Date: 2025-07-20 17:09 UTC

1. Credit Opinion: DECLINE. Carol Redman Ltd exhibits deteriorating financial health with net liabilities as of the latest accounts dated 28-02-2025. The company has a negative net asset position (-£574) and negative working capital (-£710), indicating an inability to cover short-term liabilities with current assets. This trend reflects weakening liquidity and possible cash flow challenges, which undermines confidence in its ability to service debt or honor commercial commitments reliably.

2. Financial Strength: The balance sheet shows a decline from a positive net asset position of £100 in the prior two years to a net liability position of -£574 in the latest year. Current liabilities have increased while current assets have decreased, driving the net current assets from -£70 to -£710. Fixed assets are minimal (£136), showing no significant capital base or tangible asset coverage. Shareholders’ funds are negative, indicating erosion of equity and financial weakness.

3. Cash Flow Assessment: The company’s working capital deficit (-£710) signals liquidity strain, with current liabilities exceeding current assets significantly. The reduction in current assets from £1,674 to £1,200, combined with rising creditors, implies cash outflows or poor collections. Without positive working capital, the firm may struggle to meet short-term obligations, threatening operational continuity without external funding.

4. Monitoring Points:

• Track quarterly or interim financial updates to detect further deterioration or improvement in liquidity.
• Watch for any increase in current liabilities or reduction in cash reserves.
• Monitor director’s actions for capital injections or restructuring plans.
• Assess payment history on existing trade credit facilities for signs of stress.
• Review upcoming filing deadlines to ensure continued compliance and transparency.