Company Number: 13356808

Analysis Date: 2025-07-20 17:25 UTC

1. Credit Opinion: DECLINE
   Cosmos Bruton Ltd exhibits significant financial distress as evidenced by persistent negative net assets and shareholders' funds over multiple years. The company shows a history of large current liabilities far exceeding current assets, and its financial position has only marginally improved in the latest year. The negative equity position and reliance on interest-free loans from related parties underscore weak financial resilience and raise significant repayment risk. Without evidence of sustainable cash inflows or improved liquidity, extending credit is inadvisable.

2. Financial Strength:
   The company’s balance sheet is weak, with net current liabilities of £1,397 as of 31 March 2024, albeit a major improvement from the previous years where liabilities exceeded £700k. The absence of fixed assets in 2024 (investment property disposed of) removes a key asset base. Shareholders’ funds remain negative at £1,497, indicating accumulated losses and insufficient capital. The shortfall in net assets and elevated creditors position reveal ongoing solvency concerns.

3. Cash Flow Assessment:
   Liquidity is constrained, with current assets limited to minimal debtors (£100) and no cash reported. Current liabilities stand at £1,497, covered only by related party loans, which are interest-free and thus potentially informal. The company’s working capital deficit points to an inability to meet short-term obligations from operational cash flows. The note on related party loans suggests reliance on shareholder support rather than independent cash generation.

4. Monitoring Points:

• Watch for improvements in net current assets and reduction of current liabilities.
• Monitor cash balances and operational cash flow generation for signs of sustainable liquidity.
• Track any new borrowings and repayment terms, especially from related parties.
• Review any changes in investment property holdings or asset base that could strengthen the balance sheet.
• Observe director conduct and any filings for indications of restructuring or financial distress.