CHEESYBONE LTD

Executive Summary

Cheesybone Ltd exhibits a fragile financial position with negative net assets and limited liquidity, undermining its ability to meet current and future obligations. The company’s small scale and lack of significant assets raise concerns about its capacity to service credit facilities. Without substantial improvement in financial metrics or capital structure, credit extension is not recommended at this time.

CHEESYBONE LTD - Analysis Report

Company Number: 13286461

Analysis Date: 2025-07-29 20:41 UTC

1. Credit Opinion: DECLINE
   Cheesybone Ltd’s latest financials reveal a deteriorating financial position. The company shows a net liability of £3,491 as at 31 March 2024, with creditors due after one year amounting to £6,410. Current liabilities exceed current assets resulting in negative net assets and shareholders’ funds, indicating insolvency on a balance sheet basis. The micro-entity has minimal capital (£100 share capital) and limited operational scale (one employee). Given the negative equity, minimal liquidity, and no evidence of profitability or significant asset base, the company currently lacks the financial strength to service debt or sustain additional credit risk.

2. Financial Strength:
   The balance sheet is weak and declining. Current assets slightly increased to £2,919 but remain insufficient to cover total liabilities, especially with £6,410 due after one year. Net assets have swung from positive £100 (2023) to negative £3,491 (2024). The company’s negative shareholder funds reflect accumulated losses or obligations exceeding resources. No fixed assets or other long-term investments are reported, signaling limited collateral value. The small scale and micro-entity status limit financial flexibility.

3. Cash Flow Assessment:
   The accounts do not provide detailed cash flow statements, but the balance sheet suggests constrained liquidity. Current assets (likely mainly cash and receivables) are low and insufficient to cover short-term obligations. Negative net assets imply potential cash flow stress. The absence of off balance sheet commitments or contingent liabilities is positive but does not offset the tight working capital. The single-employee operation indicates low overhead but also limited revenue-generating capacity.

4. Monitoring Points:

• Monitor improvements in net current assets and overall net asset position in future filings.
• Review cash flow statements if available to assess operational cash generation.
• Watch for changes in creditor terms or any restructuring of long-term liabilities.
• Assess any new equity injections or capital restructuring to address negative shareholder funds.
• Track operational performance and income statement metrics (profitability, turnover trends) to gauge business viability.