Company Number: 14785372

Analysis Date: 2025-07-20 12:49 UTC

1. Credit Opinion: DECLINE
   Concept Yachts Shipyard Limited is a newly incorporated micro private limited company with an untested trading history. The latest financials show significant negative net assets (£-177,692) and a large working capital deficit (£-213,702), indicating very weak financial strength and high liquidity risk. Current liabilities far exceed current assets, suggesting the company lacks the immediate resources to meet short-term obligations. Given the absence of positive retained earnings and the negative shareholders’ funds, the company’s ability to service debt or credit facilities is highly uncertain. Without evidence of additional capital injection or a robust business plan demonstrating imminent profitability, extending credit would present high risk.

2. Financial Strength:
   The balance sheet as of 31 January 2024 reveals total fixed assets of £36,010, primarily tangible assets. Current assets stand at £52,523, consisting mostly of debtors (£45,141) and a modest cash balance (£7,382). Current liabilities are disproportionately high at £266,225. This results in a net current liability position of £-213,702 and overall net liabilities of £-177,692. The negative shareholders’ funds reflect accumulated losses or capital deficiency, typical for a start-up but concerning from a credit standpoint. The company’s leverage is high, and there is no equity buffer to absorb further losses. Tangible asset coverage of liabilities is minimal.

3. Cash Flow Assessment:
   The cash balance is low (£7,382) relative to current liabilities, indicating limited liquidity. The large debtor balance may represent sales on credit, but without detailed ageing or confirmation of collectability, this introduces risk of cash flow shortfall. Net current liabilities imply the company is dependent on either new capital injections or improved operational cash flow to meet creditor demands. The absence of profit and loss details limits assessment of operating cash generation. The small employee base (2 persons) indicates a lean operation but also limited capacity to scale quickly. Overall, liquidity is fragile and working capital management is a key concern.

4. Monitoring Points:

• Quarterly updates on cash flow forecasts and debtor collections to monitor liquidity improvements.
• Capital injections or shareholder funding to improve net asset position and reduce reliance on creditors.
• Progress on sales contracts and order book development in the pleasure and sporting boats sector (SIC 30120).
• Timely filing of subsequent accounts and confirmation statements to track ongoing compliance and financial performance.
• Watch for any director or management changes that might impact governance or strategy.