CRAVEN & CRAVEN HOLDINGS LTD

Executive Summary

Craven & Craven Holdings Ltd demonstrates a high financial risk profile due to persistent and worsening negative net assets and liquidity deficits. While the company complies with filing requirements and remains active, its solvency and cash flow position raise significant concerns about operational viability. Further due diligence focusing on cash flow, business model, and financial support mechanisms is recommended to clarify future prospects.

CRAVEN & CRAVEN HOLDINGS LTD - Analysis Report

Company Number: 13879912

Analysis Date: 2025-07-29 15:13 UTC

1. Risk Rating: HIGH

Justification: The company exhibits persistent and significant negative net assets and net current assets over the three reported years, with deteriorating financial position in the latest year ending January 2024. The net liabilities have increased substantially to £22,338, indicating solvency concerns. Additionally, the company holds a negative current asset position (-£8,908) against liabilities of £26,273, reflecting liquidity risks.

2. Key Concerns:

• Solvency Risk: The company’s cumulative net liabilities and negative shareholders’ funds indicate that it is insolvent on a balance sheet basis, which raises concerns about its ability to meet long-term obligations.
• Liquidity Issues: Negative net current assets and a large current liability base suggest potential cash flow difficulties to cover short-term debts.
• Operational Stability: The company employs no staff and has not produced audited financial statements, relying on micro-entity provisions, which may limit transparency. Its business appears very small-scale and financially strained.

3. Positive Indicators:

• No overdue filings: The company’s accounts and confirmation statements are up to date, indicating compliance with statutory filing requirements.
• Active status: The company remains active and not in liquidation or administration, which suggests ongoing business operations.
• Directors and PSCs: The directors appear stable with no adverse information such as disqualifications, and they hold significant control, potentially enabling swift decision-making.

4. Due Diligence Notes:

• Investigate the company’s cash flow and working capital management to assess how it is managing liquidity pressures.
• Understand the business model and revenue generation considering the lack of employees and micro-entity status.
• Review any related party transactions or director loans that may be supporting the company financially.
• Confirm whether there are plans or capital injections intended to restore solvency.
• Examine the reasons behind the increasing liabilities and negative asset base to evaluate if the business is sustainable.