CRESCI'S LIMITED

Executive Summary

CRESCI'S LIMITED operates with a stable fixed asset base but has limited liquidity and very low equity, creating potential risk in meeting short-term obligations. While the business is active and compliant with filings, credit approval should be conditional with close monitoring of cash flow and working capital metrics to mitigate exposure. Additional security or financial support may be advisable before extending significant credit facilities.

CRESCI'S LIMITED - Analysis Report

Company Number: 12824115

Analysis Date: 2025-07-20 15:18 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   CRESCI'S LIMITED demonstrates a stable asset base primarily in fixed assets, with modest net asset growth over recent years. However, the company’s net current assets are negative, indicating current liabilities almost equal to current assets, which constrains liquidity. The company is a micro-entity with limited operating scale and minimal equity, which increases vulnerability to cash flow disruptions. Extension of credit should be conditional on monitoring liquidity closely and possibly securing additional collateral or guarantees.

2. Financial Strength:
   The balance sheet shows fixed assets at £63,794 consistently over the past years, indicating no recent capital expenditures or disposals. Shareholders’ funds have increased from £93 in 2020 to £790 in 2024, reflecting slight retained earnings or capital injections but remain very low. Current liabilities are high relative to current assets (reported as zero or near zero), leading to negative working capital. Total net assets are positive but minimal (£790), evidencing a very thin equity buffer to absorb losses.

3. Cash Flow Assessment:
   The company’s micro-entity accounts show limited liquidity, with current liabilities (~£62,800) nearly matching current assets (very low or zero reported). This tight working capital position implies limited cash flow flexibility to cover short-term obligations. The absence of cash or significant current assets suggests reliance on fixed assets or external funding to meet liabilities. There is no detailed cash flow statement available, so precise cash generation capacity is unclear but likely constrained.

4. Monitoring Points:

• Working capital trends and liquidity ratios, particularly current ratio and quick ratio.
• Changes in fixed asset valuations or disposals affecting collateral value.
• Any increase in current liabilities that could strain cash flow.
• Timely filing of accounts and confirmation statements to ensure ongoing compliance.
• Director’s management actions on improving liquidity or capital structure.