ELMBRIDGE FIR TREE ROAD LTD

Executive Summary

Elmbridge Fir Tree Road Ltd exhibits very weak financial strength with minimal net assets and a tightly matched current asset and liability position, indicating precarious liquidity. The company’s high debtor balances versus low cash reserves raise concerns about cash flow adequacy and operational viability. Given these factors, credit approval is not recommended without substantial improvements in equity and cash flow visibility.

ELMBRIDGE FIR TREE ROAD LTD - Analysis Report

Company Number: 13035616

Analysis Date: 2025-07-20 12:48 UTC

1. Credit Opinion: DECLINE
   Elmbridge Fir Tree Road Ltd shows a consistently minimal net asset base (£100) and net current assets of only £100 over multiple years, despite large current asset and liability balances. The company’s balance sheet reveals a near perfect matching of current assets to current liabilities, indicating no buffer for unexpected expenses or downturns. The substantial debtor balances (£1.2m) relative to minimal cash (£35,885) raise concerns about cash conversion and liquidity risk. The absence of profitability data (no income statement filed) and a lack of employees further obscure operational viability. Given these factors, the company appears highly leveraged with limited financial resilience and uncertain ability to meet debt obligations timely. Without stronger equity or cash flow evidence, extending credit would be risky.

2. Financial Strength:
   The company’s financial strength is weak. Shareholders’ funds remain nominal (£100), indicating no retained earnings or accumulated profits. Total assets less current liabilities equal only £100, reflecting negligible net worth. Current assets (mainly debtors) slightly exceed current liabilities, but the margin is too narrow to provide comfortable working capital. The company’s asset structure is heavily weighted towards trade debtors with very limited cash reserves, exposing it to potential liquidity issues if receivables are delayed or impaired. No fixed assets or long-term investments are reported, suggesting limited tangible collateral.

3. Cash Flow Assessment:
   Cash flow appears constrained. Cash on hand has significantly dropped from £221k in 2023 to £35.8k in 2024 while debtors have increased, implying cash is tied up in receivables rather than available for immediate obligations. The current liabilities nearly match current assets, leaving minimal net current assets (working capital) of £100. This tight liquidity position suggests the company may struggle to cover short-term debts without converting receivables quickly. The absence of employees and no profit/loss disclosure further limit insight into operational cash generation.

4. Monitoring Points:

• Closely monitor debtor aging and collection efficiency to assess liquidity risk and potential bad debts.
• Watch for any changes in shareholder equity or capital injections that might improve financial strength.
• Review future filings for profitability indicators and cash flow statements to better gauge operational sustainability.
• Track any significant changes in current liabilities that could strain working capital.
• Monitor director’s conduct and company status for any signs of financial distress or governance issues.