CHARLIE RIGGS STRATEGY LTD

Executive Summary

Charlie Riggs Strategy Ltd demonstrates a rapid deterioration in financial position with negative net assets and working capital, coupled with very limited cash reserves. Its ability to service debt is highly constrained, leading to a decline recommendation for credit exposure. Close monitoring of cash flow and working capital improvements is essential before reconsidering credit support.

CHARLIE RIGGS STRATEGY LTD - Analysis Report

Company Number: 13888169

Analysis Date: 2025-07-20 16:46 UTC

1. Credit Opinion: DECLINE
   Charlie Riggs Strategy Ltd presents significant financial weaknesses that raise concerns about its ability to meet current and future credit obligations. The company has moved from a marginally positive net asset position (£96 in 2023) to a substantial net liability position (£-5,694 in 2024), indicating a sharp deterioration in financial health within a year. Negative net current assets (£-5,982) and low cash balances (£576) suggest liquidity constraints, compromising the company's ability to service debt or meet short-term liabilities. The absence of significant debtors in the latest year compared to prior suggests potential revenue or collection issues. Given the company's short operating history (incorporated in 2022) and one director with full control, the financial risk is elevated.

2. Financial Strength:
   The balance sheet shows a decline in total assets and net assets. Tangible fixed assets are minimal (£356) and depreciating. Current liabilities exceed current assets by a large margin (£6,558 vs. £576), resulting in negative working capital. Shareholders' funds are deeply negative, indicating accumulated losses. The company's small scale and negative equity position imply weak capitalization and limited buffer against financial shocks. The director's reliance on the going concern assumption is noted but unsubstantiated by strong financial metrics.

3. Cash Flow Assessment:
   Cash resources are minimal and have decreased significantly (£1,937 in 2023 to £576 in 2024). Debtors dropped from £7,700 to zero, indicating either a loss of clients or aggressive write-offs, which could impact future cash inflows. Negative net current assets highlight inadequate working capital management. The company likely faces cash flow pressures, reducing its ability to cover immediate liabilities without additional financing or equity injection.

4. Monitoring Points:

• Track improvements in net current assets and working capital position.
• Monitor cash flow trends and debtor collections to confirm revenue recovery.
• Watch for any director or shareholder loans or capital injections to support liquidity.
• Review subsequent filings and any changes in director, control, or business strategy indicating turnaround efforts.
• Monitor overdue payments or defaults on creditors to assess credit risk exposure.