CARRE TECHNIQUE LTD

Executive Summary

Carre Technique Ltd is a very small, micro-entity with sharply declining net assets and working capital, indicating weak financial health and liquidity constraints. The company’s minimal equity base and lack of operational scale limit its ability to service debt or withstand financial stress. Given these factors, credit approval is not recommended without significant mitigating information or guarantees.

CARRE TECHNIQUE LTD - Analysis Report

Company Number: 13272749

Analysis Date: 2025-07-20 18:15 UTC

1. Credit Opinion: DECLINE
   Carre Technique Ltd exhibits a very weak financial position as of the latest accounts (March 2024) with net assets of only £936, down significantly from £5,165 in the prior year. The company’s net current assets have also declined sharply, indicating liquidity constraints. The absence of employees and minimal share capital (£100) signals an extremely small operational scale. While the company is active and current on filings, the rapid erosion of working capital and net assets suggests limited capacity to service debt or absorb financial shocks. The micro-entity status and lack of audit further restrict insight into underlying profitability or cash flow. Given these factors, the credit risk is high and the company does not demonstrate sufficient financial strength or resilience to warrant approval of new credit facilities.

2. Financial Strength:
   The balance sheet reflects declining financial strength. Current assets dropped from £25,907 to £17,152 over the last year, while current liabilities remain substantial at £16,296. Net current assets have fallen from £5,085 to a marginal £856. Total net assets have decreased by over 80%, indicating either losses or capital withdrawals. The company holds minimal fixed assets (not explicitly stated but implied by total assets less current liabilities of £936). Shareholders’ funds have shrunk correspondingly. The capital base is very thin, and no evidence of retained earnings or reserves exists to cushion losses. This fragile equity position undermines solvency and the company’s ability to meet longer-term obligations.

3. Cash Flow Assessment:
   No direct cash flow statement is provided, but the decline in net current assets and current assets implies deteriorating liquidity. The minimal working capital of £856 is insufficient to cover short-term liabilities comfortably. The company’s lack of employees may indicate outsourcing or minimal operational activity, possibly constraining cash generation capacity. The decline in current assets and net assets over the year raises concerns over negative operating cash flows or withdrawals by owners. Overall, liquidity is tight, and the firm’s ability to manage day-to-day cash demands and short-term debt looks compromised.

4. Monitoring Points:

• Monitor upcoming accounts for signs of further asset depletion or improvements in liquidity.
• Watch for any changes in current liabilities or new borrowing that could strain working capital.
• Review any changes in business activity or employment that might impact cash flow generation.
• Track directors’ conduct and related party transactions given the concentration of ownership and control within three individuals residing outside the UK.
• Confirm continued timely filing compliance and check for any adverse regulatory or legal developments.