Company Number: 13815824

Analysis Date: 2025-07-29 15:06 UTC

1. Credit Opinion: DECLINE
   Collville Limited demonstrates weak financial health with persistent negative net assets and minimal working capital. The company’s liabilities exceed its assets by approximately £10,859 as of the latest accounts, signaling balance sheet insolvency. Moreover, current liabilities remain high relative to current assets, which constrains liquidity and raises significant risk over debt servicing capability. The absence of profit retention or equity growth over three years further indicates poor financial trajectory and limited resilience to economic stress. The single director and sole shareholder structure centralizes control but does not compensate for evident financial weakness.

2. Financial Strength:
   The balance sheet shows fixed assets valued at £105,001 consistently over three years, but current assets are very low (£4,187 in 2023), while current liabilities hover around £119,448. This results in negative equity and a net liability position. The company appears reliant on long-term creditors or related party loans, which could be precarious if repayment terms become demanding. Shareholders’ funds are negative, reflecting accumulated losses or capital withdrawals, undermining the company’s financial foundation.

3. Cash Flow Assessment:
   With current assets largely consisting of minimal cash or receivables and current liabilities over £119k, the company’s liquidity is strained. Net current assets improved slightly from £342 in 2022 to £3,587 in 2023 but remain critically low relative to short-term obligations. This limited working capital suggests potential difficulties in meeting immediate debts, operational expenses, or unexpected costs. There is no indication of positive cash flow generation or accumulated reserves to buffer cash flow volatility.

4. Monitoring Points:

• Monitor net asset position and working capital trends in upcoming filings to detect any improvement or further deterioration.
• Watch for changes in creditor profiles, particularly any short-term creditor concentration or overdue payables.
• Assess director’s disclosures or changes in control that might signal restructuring or asset sales.
• Review company’s ability to generate revenue and positive cash flows, considering its real estate letting and trading activities.
• Monitor for any overdue filings or signs of financial distress such as administration or liquidation proceedings.