KERR & BURGESS GROUP LTD

Executive Summary

Kerr & Burgess Group Ltd exhibits a weak financial position with negative net current assets and shareholders’ funds, relying heavily on intercompany receivables and director advances for liquidity. While the company remains operational and compliant with filings, its limited cash and negative working capital pose repayment risks. Credit approval is conditional, requiring close monitoring of liquidity improvement and capital structure stabilization.

KERR & BURGESS GROUP LTD - Analysis Report

Company Number: 13972262

Analysis Date: 2025-07-29 20:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Kerr & Burgess Group Ltd is an active private limited company incorporated in 2022 with a primary business activity as a holding company. The company’s financials indicate negative net current assets and shareholders’ funds for the latest 2023 year-end, reflecting a weak balance sheet position. However, the company shows continuity in operations with no filing delinquencies and no director disqualifications. The credit decision is conditional based on the company's reliance on intercompany loans and working capital management, requiring monitoring of its liquidity improvement and capital structure stabilization.

2. Financial Strength:
   The company’s balance sheet as at 31 December 2023 shows:

• Current Assets: £94,640 (mostly debtors £93,880, very low cash £760)
• Current Liabilities: £95,470
• Net Current Liabilities: £830 (negative working capital)
• Shareholders’ Funds: £-430 (deficit equity)
• Fixed Assets: £400 (investment in group undertakings)
  The decrease from prior year net current assets (£-320) and shareholders’ funds (£+80) indicates a deteriorating financial position. The company depends heavily on amounts owed by group undertakings which may not be readily convertible to cash. The consistent director advances recorded as creditors (£95,000 in 2023) suggest reliance on director funding to support operations.

3. Cash Flow Assessment:
   Cash at bank is nominal (£760), showing limited immediate liquidity. The large debtors balance is largely intercompany loans (£93,880 owed by group undertakings). This creates risk as cash generation depends on the group’s ability to repay these amounts timely. Negative working capital and low cash reserves raise concerns over the company’s ability to meet short-term liabilities without further director or group support. There is no indication of external borrowing or independent revenue streams generating cash.

4. Monitoring Points:

• Working capital metrics: watch for improvement in net current assets and cash balances.
• Intercompany debtor recoverability and timing of repayments to ensure liquidity.
• Any increases in director advances or related party liabilities which may indicate cash flow stress.
• Equity position trends and whether retained losses deepen or reverse.
• Operational progress or strategic changes that might impact financial stability or creditworthiness.
• Timely filing of statutory accounts and confirmation statements to maintain compliance.