Company Number: 13976161

Analysis Date: 2025-07-29 20:25 UTC

1. Credit Opinion: DECLINE
   Cobbleacre Lakes Ltd demonstrates significant financial weaknesses that raise concerns over its ability to meet debt obligations. The company has sustained net liabilities over consecutive years with a deteriorating balance sheet position, indicating negative equity and insufficient asset coverage against liabilities. The consistent negative working capital and absence of profitability or retained earnings further undermine confidence in its debt servicing capacity. Given these factors and lack of evidence of operational turnaround or growth, extending credit is high risk.

2. Financial Strength:
   The company’s net assets stand at -£15,854 as of 31 March 2025, worsening from -£14,274 the previous year. Fixed assets have declined from £43,638 in 2022 to £28,905 in 2025, possibly reflecting disposals or depreciation without reinvestment. Current liabilities exceed current assets by £44,095, highlighting liquidity pressure. The negative shareholders’ funds confirm the company is insolvent on a balance sheet basis, limiting its ability to absorb shocks or invest in growth.

3. Cash Flow Assessment:
   Current asset composition is modest (£17,976) relative to current liabilities (£62,071), resulting in a net current liability position. This signals a working capital deficit that constrains operational liquidity. No profit and loss figures are available, but persistent negative equity suggests losses. The company’s small scale (micro-entity with 2 employees) and lack of audit mean financial controls and cash management may be limited. Cash flow risks are elevated given the mismatch between short-term obligations and liquid resources.

4. Monitoring Points:

• Monitor changes in net current liabilities and attempts to improve working capital through asset sales or capital injections.
• Track any filed profit and loss data or management commentary on operational performance improvements.
• Watch for director actions to address negative equity, such as restructuring or refinancing.
• Observe upcoming filing deadlines and whether accounts continue to show negative net assets or deterioration.
• Keep alert for any changes in director appointments or PSC structure indicating governance shifts.