Company Number: 14174987

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

1. Credit Opinion: DECLINE. Creative Brighter Gardens Ltd is a micro-entity incorporated recently in 2022 with limited financial history. The latest accounts show negative net working capital (-£621) indicating current liabilities exceed current assets, suggesting potential liquidity stress. The company’s net assets and shareholders’ funds have declined since last year (£17,752 down from £21,204), and fixed assets have decreased. This deterioration in balance sheet strength and lack of profitability information raise concerns about the company’s ability to service credit facilities or meet short-term obligations reliably. Without profit and cash flow data, the risk profile is elevated.

2. Financial Strength: The company has modest fixed assets (£21,134) and current assets (£27,979) offset by current liabilities of £28,600, resulting in a slight working capital deficit. Total net assets declined by about 16% year-over-year, with a corresponding reduction in shareholders’ equity. Furthermore, the company carries some long-term liabilities (£2,761). Overall, the balance sheet shows limited financial buffer and weakening equity, which constrains financial resilience and capacity for additional debt.

3. Cash Flow Assessment: No explicit profit and loss or cash flow statement was provided, which limits assessment. However, the negative net current assets position implies working capital constraints that could impact day-to-day liquidity. The reduction in current assets and increase in current liabilities year-on-year further suggests tightening liquidity. With only one employee (presumably the director), operational scale is minimal, but no evidence of cash generation or reserves is apparent, indicating potential cash flow vulnerability.

4. Monitoring Points:

• Monitor future filings for profit and loss information to assess earnings and cash generation.
• Watch liquidity ratios, especially current ratio and quick ratio, for improvement or further deterioration.
• Track any significant changes in creditor balances or additional borrowings.
• Review management actions to improve working capital and equity base.
• Observe filing compliance and director engagement for signs of operational stability.