CLASSIC SERVICES GROUP (CSG) LTD

Executive Summary

Classic Services Group (CSG) Ltd is a very young company with a weak financial position characterized by negative net assets and poor liquidity. The company currently lacks the financial capacity to service credit facilities or meet short-term liabilities. Without significant capital injection or operational progress, the credit risk is high, and approval for credit is not recommended at this time.

CLASSIC SERVICES GROUP (CSG) LTD - Analysis Report

Company Number: 14759934

Analysis Date: 2025-07-20 11:45 UTC

1. Credit Opinion: DECLINE
   Classic Services Group (CSG) Ltd is a newly incorporated entity (March 2023) with only one year of financial data available. The company shows significant net liabilities (£6,299) and negative shareholders' funds, indicating it is currently undercapitalized and unable to meet short-term obligations comfortably. The current liabilities (£6,399) far exceed current assets (£100), reflecting poor liquidity and a working capital deficit. Given these factors and the absence of trading profit or cash inflows, the capacity to service debt or credit facilities is highly questionable at this stage.

2. Financial Strength:
   The balance sheet reveals a weak financial position. The company holds minimal fixed or current assets, limited to £100 cash, and owes £6,399 in short-term creditors. Negative net assets and shareholder equity suggest the business has been funded by shareholder loans or other forms of non-equity financing but is currently insolvent on a balance sheet basis. The absence of any reported profit and loss account data further limits visibility on operational performance.

3. Cash Flow Assessment:
   Liquidity is a critical concern. The company's cash position is minimal (£100), while short-term liabilities exceed this by a factor of over 60 times. The negative net current assets (-£6,299) indicate a working capital deficit, meaning the company does not have sufficient liquid assets to cover immediate debts. Without evidence of cash inflows or operational revenue, there is a high probability of inability to meet creditor payments or loan servicing requirements.

4. Monitoring Points:

• Monitor future annual accounts to identify any improvement in net assets and liquidity, particularly cash generation.
• Track any capital injections or shareholder loans that may improve the balance sheet.
• Observe payment history and credit references to assess whether short-term creditors are being paid on time.
• Review director's statements or business plans for evidence of operational progress or new contracts.
• Watch for any overdue filings or adverse changes in company status (e.g., administration, liquidation).