DP MATTHEWS F/B LTD

Executive Summary

DP MATTHEWS F/B LTD is in an early stage with a weak financial position, showing negative net assets and poor liquidity. The company currently lacks the financial resources and cash flow to support credit facilities. Credit extension is not advisable until there is demonstrable improvement in financial strength and operational cash generation.

DP MATTHEWS F/B LTD - Analysis Report

Company Number: 15222289

Analysis Date: 2025-07-29 16:38 UTC

1. Credit Opinion: DECLINE
   DP MATTHEWS F/B LTD is a newly incorporated micro-entity (October 2023) with only one financial period completed. The latest accounts to 31 October 2024 show a negative net asset position of £45,345 and net current liabilities of £49,098, indicating the company is insolvent on a balance sheet basis. Current liabilities of £66,685 significantly exceed current assets of £17,587, suggesting poor short-term liquidity and limited ability to meet immediate obligations. There is no reported trading revenue or employees, implying the business has not yet generated operating cash flows. Given the negative equity and weak liquidity, the company currently lacks the financial strength and cash flow to service debt or honor commercial commitments. Without evidence of capital injection or a clear business plan with prospects for improved cash generation, extending credit would carry high risk.

2. Financial Strength:
   The balance sheet is weak, showing total fixed assets of only £3,753 and current assets of £17,587 against current liabilities of £66,685. This results in net current liabilities of £49,098 and a total net liability position of £45,345, reflecting accumulated losses or start-up funding shortfalls. Shareholders’ funds are negative, indicating insolvency on an accounting basis. The company has no employees and minimal tangible assets, further limiting operational capacity. Overall, the financial position is fragile, lacking equity cushion and working capital to support business continuity or external financing.

3. Cash Flow Assessment:
   The absence of operating data and the micro-entity filing format limit visibility on cash flow. However, the large current liabilities relative to current assets imply a liquidity crunch. The company’s inability to cover short-term debts from available liquid assets is a key concern. The negative working capital position suggests reliance on external funding or shareholder loans to meet obligations. Without clear cash inflows or capital injections, the company faces high risk of payment default.

4. Monitoring Points:

• Capital injections or shareholder funding to improve solvency and working capital
• Generation of operating revenues and positive cash flows from core activities
• Reduction in current liabilities or renegotiation of payment terms with creditors
• Timely filing of subsequent accounts and confirmation statements to ensure compliance
• Any changes in director or management that might affect governance or financial strategy