COUNTERFIRE BOOKS LIMITED

Executive Summary

Counterfire Books Limited is a micro-entity with sustained negative net assets and working capital deficits, reflecting weak financial resilience and limited operational scale. Despite a slight increase in turnover and a marginal profit in the latest year, the company’s financial position does not support extending credit facilities at this time. Close monitoring of revenue growth and liquidity metrics is recommended before reconsidering credit exposure.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

COUNTERFIRE BOOKS LIMITED - Analysis Report

Company Number: 12495718

Analysis Date: 2025-07-29 12:42 UTC

  1. Credit Opinion: DECLINE
    Counterfire Books Limited demonstrates persistent negative net assets and working capital deficits over multiple years, indicating weak financial health and inability to cover short-term liabilities. Despite slight turnover growth and a marginal profit in the latest year, the company’s scale is minimal with very low revenues (£2,485 in 2025) and negligible assets. The absence of employees and reliance on low turnover limit operational resilience and cash generation capacity. The director’s qualifications and ongoing compliance filings show competent stewardship, but the financial fundamentals do not support additional credit risk.

  2. Financial Strength:
    The balance sheet shows cumulative losses with net assets at negative £1,264 as of 31 March 2025, a slight improvement from negative £1,359 the prior year. Current liabilities (£2,579) significantly exceed current assets (£1,314), resulting in a negative working capital position of £-1,265. Fixed assets are zero, implying no collateralizable tangible assets. The company’s equity base is effectively eroded, and total liabilities equal roughly 2,500% of turnover, signaling a fragile capital structure.

  3. Cash Flow Assessment:
    The company has no reported staff costs and minimal expenses, but also minimal income, limiting liquidity inflows. Negative net current assets illustrate a working capital shortfall, raising concerns over the ability to meet immediate obligations without external support. No evidence of external financing or credit facilities is disclosed. The modest profit of £95 in 2025 is insufficient to offset accumulated deficits or improve cash reserves meaningfully.

  4. Monitoring Points:

  • Continued negative net assets and working capital position
  • Turnover trends and any material improvement in revenue streams
  • Ability to generate positive operating cash flow
  • Changes in creditor terms or accumulation of overdue payables
  • Director and compliance status to ensure no governance issues arise

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