COUNTRYWIDE SUPPLIES LIMITED

Executive Summary

COUNTRYWIDE SUPPLIES LIMITED is currently financially weak with negative net assets and a significant working capital deficit, reflecting an inability to meet short-term liabilities. The company’s micro-entity scale and sole director control limit operational and financial resilience, resulting in a high credit risk and an unsuitable candidate for new credit facilities. Ongoing monitoring of financial improvements and company status is recommended before reconsidering credit exposure.

COUNTRYWIDE SUPPLIES LIMITED - Analysis Report

Company Number: 13733376

Analysis Date: 2025-07-29 13:42 UTC

1. Credit Opinion: DECLINE
   COUNTRYWIDE SUPPLIES LIMITED exhibits significant financial distress as evidenced by negative net current assets and negative net assets (equity) for the latest financial year ending 30 November 2023. The current liabilities (£902) substantially exceed current assets (£51), resulting in a working capital deficit of £851. This indicates an inability to meet short-term obligations from liquid resources. The company is a micro entity with minimal financial scale and a single employee, limiting operational resilience and financial flexibility. The absence of profits or positive retained earnings and reliance on the sole director who holds 75-100% shares raises concerns about management depth and risk exposure. Given these factors, the company is not currently creditworthy for new lending or significant credit facilities.

2. Financial Strength:
   The balance sheet as at 30 November 2023 shows total net liabilities of £851, worsening from a net liability position of £325 in the prior period. This erosion of equity signals continued losses or capital withdrawals and weak capitalization. The micro-entity status limits the amount of publicly available financial data, but the negative shareholder funds and working capital deficiency are clear signs of poor financial health. The company’s asset base is negligible, with current assets of only £51, reflecting a lack of tangible or liquid assets to support operations or creditor claims.

3. Cash Flow Assessment:
   Liquidity is a critical concern. Current liabilities exceed current assets by a wide margin, indicating the company lacks sufficient working capital to cover short-term debts. The micro-entity accounts do not provide cash flow statements, but the balance sheet suggests cash flow challenges. The company’s ability to generate positive operating cash flows is doubtful given the minimal asset base and negative equity. This liquidity constraint poses a high risk of payment default if credit is extended.

4. Monitoring Points:

• Monitor subsequent filing of accounts for any improvement in net assets and working capital.
• Watch for changes in director or significant control that might indicate restructuring or capital injection.
• Track any overdue filings or changes in company status that might reflect financial distress worsening.
• Assess any new information on revenue, profitability, or funding sources that could strengthen liquidity.