COOPER BUILDERS LIMITED

Executive Summary

Cooper Builders Limited exhibits a significant decline in financial health with negative working capital and minimal net assets, raising major concerns about its ability to service credit facilities. Current financial metrics suggest a high risk of liquidity shortages and insolvency without intervention. Close monitoring of cash flow and capital structure is essential before considering credit approval.

COOPER BUILDERS LIMITED - Analysis Report

Company Number: 13152598

Analysis Date: 2025-07-29 12:59 UTC

1. Credit Opinion: DECLINE
   Cooper Builders Limited shows a concerning deterioration in financial position over the latest reporting period. The company’s net current assets have turned negative (£-1,537 in 2024 from £10,712 in 2023), indicating potential liquidity challenges. Additionally, net assets sharply declined to just £148 from £14,297 the prior year, reflecting a significant erosion of equity and financial buffer. Given these signs, the company may struggle to meet debt obligations or withstand economic stress without additional capital support or operational turnaround.

2. Financial Strength:
   The balance sheet reveals weakening financial strength. Fixed assets decreased from £5,062 to £3,796, and current assets declined by approximately £8,000. The increase in current liabilities to £29,255 combined with falling current assets results in negative working capital. Shareholders’ funds approaching zero suggests the company has little equity cushion, raising concerns over solvency and financial resilience.

3. Cash Flow Assessment:
   Negative net current assets indicate working capital pressure, likely constraining operational liquidity. The company’s cash or near cash assets are insufficient to cover short-term liabilities. This may imply reliance on external financing or delayed payments to suppliers. Without improved cash inflows or capital injections, ongoing liquidity risk is high.

4. Monitoring Points:

• Track quarterly cash flow and working capital trends closely to detect worsening liquidity.
• Monitor any capital injections or shareholder loans that could restore equity levels.
• Watch for overdue payments to creditors or suppliers as a sign of financial distress.
• Review subsequent filing of accounts for any changes in financial trajectory or restructuring plans.