Company Number: 13271083

Analysis Date: 2025-07-20 18:17 UTC

1. Credit Opinion: DECLINE
   GROUP 16 LTD currently exhibits significant financial weaknesses that undermine its ability to service debt or meet credit obligations reliably. The company shows persistent net liabilities with negative shareholder funds (£-6,250 as at 31 March 2024) and has large creditor balances due beyond one year (£433,080) exceeding fixed assets. Despite minor improvement in net current assets, the overall insolvency position and lack of operating income or employees raise concerns about business viability and cash flow sufficiency to cover obligations.

2. Financial Strength:
   The balance sheet is heavily leveraged with fixed assets of £425,160 but offset by long-term creditors of £433,080, resulting in negative net assets. The company is categorized as a micro-entity with minimal current assets (£359) and a small positive working capital (£1,670) due to low current liabilities reported in the latest year, but prior years show severe current liabilities exceeding current assets by a significant margin. Shareholders’ funds have deteriorated from positive £3,980 at incorporation to negative £6,250, reflecting accumulated losses or liabilities.

3. Cash Flow Assessment:
   Liquidity appears strained. The very low current assets and historically high current liabilities suggest a lack of readily available cash resources to meet short-term debts. The absence of employees and minimal current assets imply limited operational activity and cash generation. Without a clear source of income or improved working capital management, the company’s ability to generate positive cash flow to service liabilities is doubtful.

4. Monitoring Points:

• Monitor quarterly cash flow and current asset levels to detect any liquidity improvement.
• Watch creditor balances, especially long-term debts, for signs of restructuring or default risks.
• Track any changes in fixed asset valuations or disposals that could affect collateral value.
• Review director’s plans or external funding arrangements that might alter financial trajectory.
• Observe any increase in operational activity or revenue generation indicators.