Company Number: 13952393

Analysis Date: 2025-07-20 15:00 UTC

1. Credit Opinion: DECLINE
   FORKLIFTS TRAINING LTD shows significant financial distress evidenced by negative shareholders’ funds deteriorating from £1,721 (positive) at incorporation to -£20,713 at the latest year-end. The company’s current liabilities (£20,425) vastly exceed current assets (£1,452), yielding a negative working capital position. This indicates an inability to meet short-term obligations. The worsening net equity and rising accruals suggest ongoing cash flow strain and potential reliance on director or external funding. Given the micro company size and minimal operating history (incorporated 2022), the credit risk is high with no demonstrated profitability or liquidity to support debt service.

2. Financial Strength:
   The balance sheet is weak. The company’s net current liabilities of approximately £18,973 (£1,452 - £20,425) represent a liquidity shortfall. Negative net assets underline insolvency on a balance sheet basis, which is a major concern for creditors. The absence of fixed assets implies little collateral value. The accruals and deferred income in 2024 (£1,740) further increase short-term liabilities. The decline from positive equity in 2022 to significant deficit in 2024 signals losses and capital erosion, undermining financial stability.

3. Cash Flow Assessment:
   The company’s cash and short-term assets are insufficient to cover immediate liabilities. Negative working capital indicates potential cash flow crunch and risk of payment delays or defaults. The single employee suggests a very small operation with limited revenue generation capacity. The absence of audit and reliance on micro-entity accounts limit visibility into operational cash flows, but the financial position implies cash burn or undercapitalization. Without improvement in current asset levels or capital injection, liquidity risk remains elevated.

4. Monitoring Points:

• Working capital trends and whether current assets can be increased to cover liabilities.
• Any capital infusion or director loans to shore up equity and liquidity.
• Timely filing of accounts and confirmation statements to avoid compliance risk.
• Revenue growth and profitability development to restore positive retained earnings.
• Changes in director or ownership that might affect governance and financial stewardship.