HENRY KRUGER CHARCOAL LTD

Executive Summary

Henry Kruger Charcoal Ltd is a newly established micro-entity with a weak financial position, showing net liabilities and minimal assets as of June 2024. The company’s lack of operating history, negative working capital, and absence of fixed assets limit its capacity to service debt or sustain credit risk. Therefore, credit approval is not recommended at this time pending stronger financial evidence.

HENRY KRUGER CHARCOAL LTD - Analysis Report

Company Number: 14968548

Analysis Date: 2025-07-29 15:34 UTC

1. Credit Opinion: DECLINE. Henry Kruger Charcoal Ltd is a recently incorporated micro-entity with minimal operating history and negligible financial resources. Its balance sheet as of 30 June 2024 shows net current liabilities of £615 and net negative shareholders’ funds of the same amount, indicating an insolvent position on a net asset basis. The absence of fixed assets, zero employees, and current liabilities exceeding current assets raise concerns about its ability to meet short-term obligations or service any debt. Without evidence of trading income, cash inflows, or capital backing beyond the nominal equity, the risk of default is high. The single director and 100% controlling shareholder may limit governance transparency and financial oversight. Given these factors, extending credit is not advisable at this stage.

2. Financial Strength: The company’s financial position is weak. As a micro-entity, it reported £11,463 in current assets versus £12,078 in current liabilities, resulting in negative net current assets and net liabilities of £615. There are no fixed assets or reserves to cushion financial distress. Shareholders’ funds stand at negative £615, indicating that liabilities exceed assets. The company has no employees, and its status as a start-up limits historical financial data for trend analysis. Overall, the balance sheet reflects very low capitalization and vulnerability to adverse cash flow fluctuations.

3. Cash Flow Assessment: Liquidity appears constrained. Current liabilities marginally exceed current assets, implying potential difficulties in meeting short-term payables without additional financing or capital injection. The absence of cash or equivalents disclosed separately suggests working capital is minimal or negative. No operating cash flow data is available, but zero employees and lack of fixed assets imply limited ongoing business activities generating cash. The company’s ability to generate positive cash flow to service any credit facility is therefore uncertain.

4. Monitoring Points:

• Track subsequent filings for updated accounts and confirmation statements to verify ongoing compliance and financial status.
• Monitor cash balances and short-term liabilities to assess liquidity trends.
• Review any capital injections or related party funding that may improve net asset position.
• Watch for changes in director or ownership structure that might affect governance or credit risk.
• Obtain management accounts or cash flow forecasts if credit is reconsidered in future.