KRESTFIELD ESTATES LTD

Executive Summary

Krestfield Estates Ltd is a micro-entity with a weak financial position characterized by negative equity and working capital deficits. The company’s inability to improve its balance sheet or generate positive liquidity raises significant concerns regarding its capacity to meet credit obligations. Given the current financials and short operating history, credit approval is not recommended without substantial financial restructuring or capital backing.

KRESTFIELD ESTATES LTD - Analysis Report

Company Number: 14306174

Analysis Date: 2025-07-20 16:59 UTC

1. Credit Opinion: DECLINE
   Krestfield Estates Ltd demonstrates persistent negative net assets (£2,978 loss as of 2024) and ongoing net current liabilities (£3,337 deficit). The balance sheet shows no meaningful financial cushion or equity, indicating the company is undercapitalized. The inability to generate positive working capital and net assets over consecutive years signals weak financial stability and high credit risk. Given the micro-entity scale and limited trading history (since 2022), the company currently lacks the financial strength and liquidity to reliably service debt or meet commercial obligations without additional support or capital injection.

2. Financial Strength:
   The company’s fixed assets are negligible (£654), and the primary concern is the persistent net current liability position caused by current liabilities exceeding current assets. Shareholders’ funds are negative and deteriorated from £2,429 deficit in 2023 to £2,978 deficit in 2024. This indicates accumulated losses or lack of equity investment. The company’s small scale and negative equity position imply very weak solvency and a fragile balance sheet.

3. Cash Flow Assessment:
   Current assets of £4,663 (mainly cash or receivables) are insufficient to cover short-term liabilities of £8,000. Negative working capital of £3,337 suggests cash flow constraints and potential difficulties in meeting short-term obligations. The absence of an audit and limited financial disclosures mean cash flow quality is uncertain, but the available data points to liquidity risk.

4. Monitoring Points:

• Improvement or further deterioration of net current assets and net liabilities in future filings.
• Any capital injections or shareholder funding to bolster equity and liquidity.
• Management’s ability to generate positive operating cash flow and reduce creditors.
• Timely filing of accounts and confirmation statements to ensure ongoing compliance.
• Business model viability given the lack of fixed assets and micro-entity scale.