Company Number: 12815551

Analysis Date: 2025-07-20 15:11 UTC

1. Credit Opinion: DECLINE
   Costessey Developments Ltd demonstrates ongoing negative net current assets and net liabilities over the last two reported years. The balance sheet shows worsening working capital, with current liabilities exceeding current assets by £4,331 in 2024, deteriorating from £3,245 in 2023. This indicates liquidity stress and potential difficulty in meeting short-term obligations. The company is a micro-entity with minimal share capital (£100) and limited financial resources. There is no indication of profitability or cash flow generation to cover liabilities. Given these factors, the company is a credit risk and should not be extended unsecured credit without strong mitigating factors such as personal guarantees or external collateral.

2. Financial Strength:
   The company’s balance sheet is weak and declining. Net assets are negative (£4,331), reflecting liabilities exceeding assets. The company holds only current assets (£16,999) with no fixed assets reported. Current liabilities (£21,330) are higher than current assets, resulting in a working capital deficit. The minimal equity base and recurring net liabilities suggest the company is undercapitalized and possibly reliant on external funding or shareholder loans. The small scale (micro-entity) and low asset base limit financial flexibility and resilience.

3. Cash Flow Assessment:
   Working capital is negative and deteriorating, implying the company is not generating sufficient short-term cash inflows to cover its immediate liabilities. The data does not show cash or cash equivalents explicitly, but current assets likely include some cash or receivables. The consistently negative net current assets over five years point to persistent liquidity challenges. The company employs only one person, which might help contain operating costs, but there is no evidence of profitable operations or cash flow sufficiency from trading activities.

4. Monitoring Points:

• Monitor net current assets and overall liquidity position in future filings to detect any improvement or further deterioration.
• Track changes in shareholder funds and capital injections that may strengthen the balance sheet.
• Review any disclosures on revenue, profitability, or debt servicing capacity if made available.
• Observe director actions or external financing arrangements that could mitigate credit risk.