CEDAR GREEN CONSULTANCY LTD

Executive Summary

Cedar Green Consultancy Ltd has a weak financial profile characterized by negative net assets and tight liquidity, reflecting an elevated credit risk. The company’s ability to service debt is questionable without significant improvement in profitability or capital structure. Credit extension is not recommended at this stage without strong mitigating factors.

CEDAR GREEN CONSULTANCY LTD - Analysis Report

Company Number: 14007452

Analysis Date: 2025-07-29 18:57 UTC

1. Credit Opinion: DECLINE
   Cedar Green Consultancy Ltd shows persistent negative net assets and shareholders' funds over its first two years of trading, indicating an ongoing erosion of equity. The company’s liabilities significantly exceed its assets, with long-term creditors outweighing fixed assets and minimal current assets to cover short-term obligations. This weak financial position raises concerns about the company’s ability to meet debt repayments or absorb financial shocks. Given the micro entity status and the lack of profitability disclosed, extending credit facilities carries a high risk of default.

2. Financial Strength:
   The balance sheet reveals fixed assets of £155,168, but current assets are very low (£1,745 in 2024), barely covering current liabilities of £1,595. The company has substantial non-current liabilities (£167,333), resulting in net liabilities of £12,615. The negative net assets indicate that accumulated losses or creditor financing exceed the company’s resources. The slight improvement in net current assets from -£335 in 2023 to +£150 in 2024 is insufficient to mitigate the overall weak capital base.

3. Cash Flow Assessment:
   With current assets nearly equal to current liabilities, liquidity appears tight, limiting operational flexibility. The minimal working capital suggests the company may struggle to finance day-to-day expenses without additional funding. The absence of profit and loss data precludes assessment of cash generation from operations, but the deteriorating equity position implies ongoing losses or cash outflows. Reliance on external financing or shareholder support is likely necessary to maintain solvency.

4. Monitoring Points:

• Net asset position and any movement towards positive equity.
• Liquidity trends, especially current ratio improvements.
• Evidence of profitability or positive cash flow in future accounts filings.
• Changes in debt structure or creditor composition.
• Director’s plans for financial restructuring or capital injection.