COMBELLE LTD

Executive Summary

Combelle Ltd is a very small company showing negative net assets and poor working capital, reflecting financial distress and limited capacity to service debt. The credit risk is high due to ongoing losses and liquidity shortfalls. Without significant improvement in financial position and cash flows, granting credit would be imprudent at this stage.

COMBELLE LTD - Analysis Report

Company Number: 14385016

Analysis Date: 2025-07-29 17:43 UTC

1. Credit Opinion: DECLINE
   Combelle Ltd exhibits significant financial distress with net liabilities of £23,494 as at 30 September 2024, worsening from £4,657 the previous year. The company has negative shareholders’ funds and net assets, indicating an erosion of capital. Current liabilities exceed current assets, raising concerns about the company’s ability to meet short-term obligations. The absence of audit and reliance on micro-entity reporting limits financial transparency. Given these factors and the company’s short operating history since incorporation in 2022, it lacks the financial robustness needed to support additional credit facilities at this time.

2. Financial Strength:
   The balance sheet shows very limited fixed assets (£934) and a modest level of current assets (£18,142) but with current liabilities at £41,263, resulting in negative working capital. Long-term creditors are not separately identified beyond current liabilities, but overall net liabilities stand at £23,494. The deterioration in net assets over two years signals ongoing losses or capital withdrawals. The company is a micro-entity with only one employee (the director), which suggests a small scale operation but also limited financial resources.

3. Cash Flow Assessment:
   Current assets primarily represent receivables or cash equivalents; however, the current liabilities more than double current assets, indicating liquidity issues. The negative net current assets imply insufficient working capital to cover short-term debts. Without detailed cash flow statements, it is difficult to assess operating cash generation, but the balance sheet position infers cash flow constraints. The company’s ability to generate positive operational cash flows or secure additional short-term financing appears weak.

4. Monitoring Points:

• Improvement in net assets and shareholder funds
• Reduction in current liabilities relative to current assets
• Evidence of positive cash flow from operating activities
• Timely filing of accounts and confirmation statements
• Changes in director or ownership structure
• Any material increase in revenue or profitability reported in future filings