CLAXTON ENTERPRISES LTD

Executive Summary

Claxton Enterprises Ltd operates with a small asset base primarily in real estate but exhibits persistent working capital deficits and high creditor reliance, raising medium-level solvency and liquidity concerns. The company maintains good regulatory compliance and stable governance, but limited operational scale and financial buffers warrant further investigation into cash flow dynamics and creditor arrangements before investment consideration.

CLAXTON ENTERPRISES LTD - Analysis Report

Company Number: 12775705

Analysis Date: 2025-07-29 14:43 UTC

1. Risk Rating: MEDIUM
   Claxton Enterprises Ltd demonstrates a modest net asset position but persistent net current liabilities raise concerns about short-term liquidity. The company’s small scale and limited financial disclosures restrict comprehensive assessment, but current obligations exceed readily available current assets, indicating potential cash flow stress.

2. Key Concerns:

• Negative Net Current Assets: The company shows a consistent shortfall in working capital (net current liabilities of approximately £31,900 in 2024), suggesting difficulty in meeting short-term liabilities from current assets.
• High Long-term Creditors Relative to Equity: Non-current liabilities (£62,800 in 2024) significantly exceed shareholders' funds (£4,345), which may indicate leverage risks and dependency on creditor financing.
• No Employees and Minimal Capital: The absence of employees and nominal share capital (£10) could imply limited operational capacity and financial buffer, raising questions about sustainability and ability to scale or absorb shocks.

3. Positive Indicators:

• Stable Fixed Asset Base: The company holds fixed assets around £99,000-£109,000, which may represent property or leased real estate assets consistent with its SIC classification (letting and operating own/leased real estate).
• Timely Filing and Compliance: No overdue filings or confirmation statements; accounts and returns are up to date, indicating sound regulatory compliance.
• Active Status and Established Directors: The company is active since 2020 with three directors maintaining consistent appointments, suggesting stable governance without any known disqualifications.

4. Due Diligence Notes:

• Clarify Nature and Terms of Creditors: Examine the composition and maturity of current and long-term liabilities to assess repayment obligations and potential refinancing risks.
• Review Cash Flow and Profitability: Obtain or request management accounts or cash flow statements to better understand operational cash generation and sustainability.
• Assess Asset Valuation and Liquidity: Verify the fixed assets’ valuation and their marketability, especially if these underpin the company’s borrowing or operating model.
• Investigate Business Model Viability: Understand how the company generates revenue given it has zero employees and nominal share capital, including any reliance on related parties or external contractors.
• Director Background Checks: Although no disqualifications are noted, evaluate directors’ experience and any potential related-party transactions given their occupations outside traditional real estate management.