Company Number: 12734502

Analysis Date: 2025-07-20 15:19 UTC

1. Credit Opinion: DECLINE. The company presents a weak financial position with significant current liabilities exceeding current assets by a wide margin, resulting in negative net current assets and net liabilities on the balance sheet. The company’s inability to cover short-term obligations raises concerns about its liquidity and capacity to service debt. The small asset base and minimal equity cushion further limit financial resilience. Without clear evidence of improving cash flows or profitability, extending credit facilities would be high risk.

2. Financial Strength: The balance sheet shows total net liabilities of £19,239 as of 31 July 2024, a worsening from £15,924 net liabilities in 2023. Fixed assets are minimal (£8,100), and current assets remain static at £4,200, while current liabilities have increased substantially from £20,124 in 2023 to £31,539 in 2024. Shareholders’ funds are negative, indicating erosion of equity. This signals financial weakness and limited buffer to absorb losses or economic shocks.

3. Cash Flow Assessment: Current liabilities vastly outweigh current assets, resulting in a negative working capital position of £27,339. This indicates liquidity stress and a potential inability to meet short-term commitments as they fall due. The company employs only one person and has not demonstrated growth in current assets or reduction in liabilities. The static cash-like current assets and rising creditors suggest cash flow management challenges.

4. Monitoring Points:

• Track quarterly cash flow statements to detect any improvement in liquidity.
• Monitor changes in creditor levels and debtor collections to assess working capital efficiency.
• Review any operational changes or new contracts that may affect revenue and cash inflows.
• Confirm ongoing compliance with filing deadlines and any changes in director or ownership structure.
• Watch for any material changes in net assets or introduction of new financing.