Company Number: SC682490

Analysis Date: 2025-07-29 18:46 UTC

1. Credit Opinion: DECLINE
   David Brewster Consultants Limited demonstrates a weak financial position with net current liabilities worsening from £(3,434) in 2022 to £(24,007) in 2023, and negative shareholders’ funds deepening from £(3,197) to £(21,466). The company remains insolvent on a balance sheet basis and relies on director loans for ongoing support. Such financial distress and liquidity shortfalls indicate a poor ability to meet debt obligations without continued external support. The lack of profitability disclosure and limited asset base further exacerbate credit risk. Therefore, credit facilities are not recommended at this time.

2. Financial Strength:
   The balance sheet reveals very limited fixed assets (£2,645) and a significant working capital deficit. Current liabilities (£39,197) far exceed current assets (£15,190), indicating poor short-term financial health. The company’s negative equity position reflects accumulated losses and an inability to build reserves. While the director’s ongoing funding mitigates immediate insolvency risk, the business has no substantive financial buffer or retained earnings to absorb shocks. The company is classified as small in size but fails to demonstrate the financial strength typical of this category.

3. Cash Flow Assessment:
   Cash on hand is low (£2,674) and has declined substantially from the prior year (£9,196), reflecting potential cash flow strain. Debtors have also decreased considerably, suggesting reduced sales or collection issues. The substantial increase in creditors suggests deferred payments to suppliers or accrued liabilities, which may be a sign of liquidity stress. Overall, the working capital and cash flow situation is unfavorable, with a negative net current asset position indicating the company may struggle to meet short-term obligations without further capital injections.

4. Monitoring Points:

• Continued director financial support and any formalization of these loans
• Improvement or deterioration in net current assets and working capital
• Turnover and profitability trends once disclosed, especially cash conversion cycle
• Any changes in trade creditor payment terms or evidence of supplier pressure
• Filing of next accounts and confirmation statement on time to assess updated financials
• Any new financing arrangements or restructuring plans to address insolvency