CITY TO COUNTRY RETREAT LIMITED

Executive Summary

City to Country Retreat Limited demonstrates significant financial weakness with persistent negative net assets and poor liquidity, raising serious concerns about its ability to meet debt obligations. The company's working capital deficit and undercapitalization indicate elevated credit risk. Credit approval is not recommended without substantial evidence of turnaround or financial support.

CITY TO COUNTRY RETREAT LIMITED - Analysis Report

Company Number: 13442294

Analysis Date: 2025-07-29 18:13 UTC

1. Credit Opinion: DECLINE
   City to Country Retreat Limited shows persistent negative net assets and net current liabilities over the past three years. Current liabilities significantly exceed current assets, indicating severe liquidity issues that compromise its ability to meet short-term obligations. The company operates with a very thin capital base (£100 share capital) and continues to report net liabilities, suggesting ongoing losses or accumulated deficits. Without evidence of significant external support or imminent turnaround, the risk of default on credit facilities is high.

2. Financial Strength:
   The company’s balance sheet reflects weak financial health. Fixed assets have increased modestly from £154k to £197k over three years, but current liabilities have risen sharply to £226k, far outstripping current assets of only £6.5k. Negative net current assets of -£218k imply the company cannot cover short-term debts from liquid resources. Net liabilities of -£24k and negative shareholders’ funds confirm an undercapitalized position. This lack of equity buffer undermines resilience to financial stress.

3. Cash Flow Assessment:
   Working capital is highly negative, indicating poor liquidity management and potential cash flow distress. The minimal current assets relative to current liabilities suggest the company may struggle to pay suppliers or creditors on time. The absence of cash or equivalents disclosure limits visibility into immediate liquidity, but the imbalance strongly signals cash flow constraints. Continued reliance on creditor funding or director support may be necessary, raising concerns about sustainability.

4. Monitoring Points:

• Watch for improvements in net current assets and reduction in current liabilities.
• Track profitability trends to see if losses decrease and reserves replenish.
• Monitor cash balances and working capital cycle closely.
• Assess any director or shareholder financial support or capital injections.
• Review future filings for signs of restructuring or refinancing efforts.