Company Number: 12449793

Analysis Date: 2025-07-20 15:37 UTC

1. Credit Opinion: DECLINE
   Creative Glass Care Limited demonstrates significant and persistent negative net assets and working capital deficits over multiple reporting periods. The company’s current liabilities substantially exceed its current assets, resulting in negative net current assets of approximately £283k as of February 2024. This indicates an inability to cover short-term obligations, raising substantial liquidity concerns. The continuing erosion of net assets and shareholders funds, now at around -£220k, coupled with no clear evidence of profitability or positive cash flow trends, suggests weak financial resilience and elevated credit risk. Without substantial improvement in cash generation or external capital injection, the company is unlikely to service debt or meet financial covenants reliably.

2. Financial Strength:
   The balance sheet reflects ongoing financial distress. Fixed assets remain modest at approximately £63k, with goodwill amortised down to around £24k. Current assets increased primarily due to inventory (£102k), but this stock does not appear to convert quickly into cash, as overall current assets remain insufficient relative to current liabilities (£398k). The negative net asset position signals accumulated losses or liabilities exceeding assets, undermining the company’s net worth and creditor protection. The company’s minimal issued share capital (£1) further limits equity backing. The absence of shareholders’ funds and growing creditor balances indicate weak capitalization and limited financial buffer.

3. Cash Flow Assessment:
   Cash balances have declined sharply from £27k in 2023 to under £8k in 2024, signaling cash outflows or constrained liquidity. Debtors are low (£3.8k) and unlikely to offset the significant short-term liabilities. With current liabilities exceeding current assets by nearly £283k, the company faces a liquidity shortfall and probable reliance on creditor financing or external funding to maintain operations. Negative working capital and depleted cash reserves highlight vulnerability to payment delays or funding interruptions, raising concerns about ongoing operational sustainability.

4. Monitoring Points:

• Working capital trends and inventory turnover rates to assess liquidity improvements.
• Cash flow from operations and any external financing arrangements or capital injections.
• Debtor collection efficiency and creditor payment terms to manage cash conversion cycle.
• Any changes in business strategy or management actions aimed at restoring profitability and balance sheet strength.
• Timely filing of accounts and confirmation statements to maintain compliance and monitor governance.