CENTRES DIRECT LIMITED

Executive Summary

Centres Direct Limited is experiencing significant financial distress, evidenced by a sharp deterioration in working capital and negative net assets. The company’s liquidity position is weak, raising concerns about its ability to meet short-term obligations and service credit facilities. Given the current financial trajectory and lack of mitigating information, approval of credit facilities is not recommended.

CENTRES DIRECT LIMITED - Analysis Report

Company Number: 13138253

Analysis Date: 2025-07-29 21:01 UTC

1. Credit Opinion: DECLINE. Centres Direct Limited shows a significant weakening in financial position over the most recent year. The company moved from positive net current assets of £45,611 in 2023 to a net current liability position of £16,739 in 2024. Shareholders’ funds are deeply negative and deteriorated further from -£17,800 to -£18,739. This indicates ongoing losses or erosion of capital. The micro-entity status limits financial disclosures, but the available data suggests the company is not generating sufficient profits or cash flow to strengthen its balance sheet. Without evidence of a turnaround plan or improved liquidity, the risk of non-payment on credit facilities is high.

2. Financial Strength: The balance sheet is weak with net liabilities of £18,739 as of the latest accounts. Current liabilities have increased sharply to £24,596 while current assets have dropped to only £7,857, indicating poor short-term liquidity and working capital deficiencies. The company has minimal share capital (£100) and accumulated losses are substantial, reflected in negative shareholders’ funds. No fixed asset values are reported, which may imply limited tangible collateral. The deterioration from a previously positive net working capital position in 2023 to a negative one in 2024 is a red flag for financial stability.

3. Cash Flow Assessment: The company’s net current liabilities suggest strained cash flow and possible difficulty in meeting short-term obligations as they fall due. The large increase in creditors (current liabilities) combined with a steep reduction in current assets (likely cash and receivables) points to liquidity pressure. The company’s accounts do not disclose cash flow statements, but the working capital trend implies reliance on external funding or delayed payments from suppliers. This undermines confidence in operational cash generation and the ability to service new or existing debt.

4. Monitoring Points:

• Quarterly monitoring of cash balances and creditor days to identify liquidity crunches early.
• Watch for any material changes in current liabilities or asset base in subsequent filings.
• Director commentary or strategic plans for financial recovery should be reviewed when available.
• Monitor timely filing of accounts and confirmation statements to assess management discipline.
• Track any changes in ownership or director appointments that could indicate restructuring.