DONT BURST MY BUBBLE LTD

Executive Summary

DONT BURST MY BUBBLE LTD is a micro-entity with minimal assets and limited liquidity, showing no clear signs of financial growth or resilience. The company’s fragile balance sheet and cash position do not support credit approval. Close monitoring of financial metrics and business developments is essential before reconsidering credit facilities.

DONT BURST MY BUBBLE LTD - Analysis Report

Company Number: 14007326

Analysis Date: 2025-07-29 20:41 UTC

1. Credit Opinion: DECLINE
   DONT BURST MY BUBBLE LTD, a micro-entity incorporated in 2022, shows very weak financials with minimal net assets (£261 as at 31 March 2024) and negligible current assets (£1,367). The company has no employees currently and operates in a niche artistic creation sector, which may have irregular income streams. The declining net assets from a negative £445 in the prior year to positive but minimal £261 currently does not indicate meaningful financial strength or growth. Given the limited scale, very low asset base, and lack of liquidity, the company is unlikely to have capacity to service any significant credit facilities. Therefore, credit approval is not recommended at this time.

2. Financial Strength:
   The balance sheet reflects minimal financial resources. Current liabilities have decreased from £2,240 in 2023 to £1,106 in 2024, which is positive, but current assets also declined from £1,795 to £1,367. Net current assets are positive but very low at £261. No fixed assets or long-term investments are reported. Shareholder funds equal net assets of £261, indicating the company is barely solvent. The small equity base and absence of tangible assets suggest a fragile financial position with limited buffer against trading downturns.

3. Cash Flow Assessment:
   The minimal current assets and very low net working capital indicate tight liquidity. The company’s ability to generate cash internally or hold cash reserves is doubtful. The absence of employees and the micro-entity scale imply limited ongoing operations or revenue. This raises concerns about the company’s capacity to meet short-term obligations and service any debt comfortably. Without cash flow projections or evidence of sustained revenue, liquidity risk is high.

4. Monitoring Points:

• Track changes in net current assets and net assets for improvement or deterioration.
• Monitor any increase in current liabilities which may stress liquidity further.
• Review future accounts for evidence of revenue growth or profitability.
• Watch for any significant capital injections or asset acquisitions that could strengthen the balance sheet.
• Monitor director’s management and any changes in business strategy that could impact financial stability.