CITY SUBURBAN TREE SURGEONS (RECYCLING) LIMITED

Executive Summary

City Suburban Tree Surgeons (Recycling) Limited is a newly incorporated private company with a currently weak liquidity position, as evidenced by net current liabilities exceeding £100k and limited cash reserves. While the company has complied with filing requirements and holds tangible fixed assets, the high short-term creditor balance and lack of historical performance data raise significant solvency and operational stability concerns. Further due diligence is required to evaluate creditor terms and cash flow management to determine financial viability.

CITY SUBURBAN TREE SURGEONS (RECYCLING) LIMITED - Analysis Report

Company Number: 14554887

Analysis Date: 2025-07-20 11:13 UTC

1. Risk Rating: HIGH

Justification: The company shows significant net current liabilities (£105,691) with current liabilities far exceeding current assets, indicating immediate liquidity concerns. The company is newly incorporated (December 2022) and has only filed one set of accounts covering just over one year. The small share capital (£100) and relatively low net assets (£13,818) suggest limited financial buffer. The large proportion of creditors due within one year (£150,994) compared with cash and debtors (total £45,303) heightens solvency risk.

2. Key Concerns:

• Liquidity shortfall: Current liabilities are more than three times current assets, indicating possible cash flow difficulties to meet short-term obligations.
• High reliance on creditors: Other creditors of £134,203 make up the bulk of current liabilities; terms and nature of these liabilities need close scrutiny.
• Early stage company with limited operating history: Incorporated late 2022 with only one financial period reported, making trend analysis and operational stability difficult to assess.

3. Positive Indicators:

• Tangible fixed assets of £120,655 provide some asset backing, though these are less liquid.
• No overdue filings; accounts and confirmation statements are up to date, indicating regulatory compliance.
• Directors are experienced professionals with clear roles and control, suggesting governance structure is in place.

4. Due Diligence Notes:

• Investigate the composition and terms of the large "other creditors" balance to understand if these are trade payables, loans, or related party balances.
• Review cash flow statements and management forecasts to assess how the company plans to address current liabilities exceeding current assets.
• Assess revenue streams, customer base, and contract terms to evaluate operational sustainability.
• Confirm no director disqualifications or adverse regulatory issues exist beyond available public records.
• Monitor future filings for trends in profitability, working capital management, and asset utilization.