CILFYNYDD BESS LIMITED

Executive Summary

CILFYNYDD BESS LIMITED currently exhibits a weak financial position with significant negative net current assets and negative equity, indicating liquidity and solvency concerns. As a newly incorporated micro-entity with no employees and high creditor balances, its ability to service debt obligations is highly questionable. Credit approval is not recommended without substantial improvement in financial strength and cash flow generation.

CILFYNYDD BESS LIMITED - Analysis Report

Company Number: 14469856

Analysis Date: 2025-07-29 14:15 UTC

1. Credit Opinion: DECLINE
   CILFYNYDD BESS LIMITED shows a significantly negative net current assets position of £206,442, indicating current liabilities exceed current assets by this amount. This suggests liquidity stress and potential difficulty in meeting short-term obligations. The company is very new (incorporated Nov 2022) and classified as micro-entity with no employees, limiting its operational scale and financial track record. The negative equity position also signals accumulated losses or funding structure issues. Without operating cash flows or assets to cover liabilities, the risk of default on credit facilities is high.

2. Financial Strength:
   The balance sheet shows total liabilities exceeding current assets by £206,442, resulting in negative net assets and shareholders' funds of the same amount. There are no fixed assets or long-term liabilities reported. The absence of positive net assets and the large creditor balances indicate weak financial strength and potential over-reliance on creditor financing or shareholder loans. Being a micro-entity with minimal financial disclosure limits insight into profitability or cash generation.

3. Cash Flow Assessment:
   Current assets are £21,692, mainly likely cash or receivables, while current liabilities are £228,689. This poor working capital position suggests liquidity constraints and an inability to cover short-term debts from operating cash flows or liquid assets. The lack of employees and operational scale further raises questions about the company's capacity to generate cash internally to improve liquidity.

4. Monitoring Points:

• Monitor updates to financial statements for improvement in net current assets and net equity.
• Track any changes in creditor composition and maturity terms to assess refinancing risk.
• Review director and shareholder funding injections or capital raises that might improve liquidity.
• Watch for operational developments or contracts that could generate sustainable cash flow.
• Monitor timely filing of accounts and confirmation statements to assess compliance and governance.