Company Number: 13041295

Analysis Date: 2025-07-20 13:01 UTC

Credit Opinion:
CONDITIONAL APPROVAL. Central UK Group Limited demonstrates reasonable liquidity and working capital coverage; however, it shows persistent net liabilities and negative shareholders' funds, indicating accumulated losses and a weakened equity base. The company relies heavily on related-party funding, which supports going concern status but raises dependency risk. Loan facilities or credit lines should be extended with caution, subject to ongoing monitoring of solvency and operational cash flow stability.

Financial Strength:
The company's net assets are negative at (£122,652) as of 30 June 2024, deteriorating from (£99,551) the prior year, reflecting ongoing losses or write-downs. Fixed assets have significantly decreased from £125,640 to £11,823, mainly due to disposals or revaluations. The balance sheet shows substantial long-term liabilities (£491,057) classified as amounts due after more than one year, largely owed to related entities. Share capital is minimal (£940), and retained losses are considerable (£123,662). Overall, the balance sheet is weak, with a leveraged position and reliance on director and group company advances.

Cash Flow Assessment:
Current assets (£594,351) comfortably exceed current liabilities (£237,769), yielding strong net current assets (£356,582), which supports short-term liquidity. Cash on hand is low (£6,221), but substantial debtor balances (£588,130) suggest good receivables inflow, although this may tie up working capital. The company’s ability to meet immediate obligations appears adequate. However, the high level of long-term creditors and director loans indicates cash flow pressures over the long term. Interest-bearing director advances (£306,651 combined) also highlight dependency on internal financing.

Monitoring Points:

• Track net asset position and retained losses to assess if equity erodes further.
• Monitor debtor ageing and collection efficiency to ensure receivables convert timely into cash.
• Review related-party and director loan balances and repayment terms for potential refinancing risks.
• Watch for changes in current liabilities versus current assets to maintain healthy working capital.
• Assess profitability trends once income statements become available to confirm recovery or ongoing losses.
• Keep oversight on director conduct and any changes in control or management that might affect governance.