LETS GET READY TO CRUMBLE LTD

Executive Summary

Lets Get Ready To Crumble Ltd displays weak liquidity and limited financial resources, with significant working capital deficits and reliance on director loans. The company’s inability to demonstrate stable cash flows or operational receivables poses a high credit risk. Approval of new credit facilities is not recommended without significant improvement in financial position and cash flow.

LETS GET READY TO CRUMBLE LTD - Analysis Report

Company Number: 14328579

Analysis Date: 2025-07-20 13:13 UTC

1. Credit Opinion: DECLINE. The company, Lets Get Ready To Crumble Ltd, shows a weak liquidity position with significant negative net current assets for the past two years and a minimal net asset base (£1,066 in 2024). There is no evidence of positive cash flow or debt servicing ability. The absence of trade debtors in 2024 combined with large current liabilities indicates potential operational or collection issues. Given the company’s short trading history (incorporated 2022) and limited financial resources, it cannot reliably demonstrate capacity to meet credit obligations.

2. Financial Strength: The balance sheet reveals very low fixed assets (£13,179) and no debt beyond short-term creditors. Shareholders’ funds are nominal (£1,066) and only slightly improved from the prior year. Net current liabilities remain substantial (-£12,113 in 2024), reflecting a working capital deficit. The company’s capital structure is fragile, with reliance on director loans (approximately £11,974 included in creditors) indicating external financing from insiders rather than operating cash generation.

3. Cash Flow Assessment: Cash on hand is minimal (£360 at year-end 2024), with no trade debtors reported in the latest year, suggesting poor receivables or a possible cessation of credit sales. Negative net current assets and high short-term liabilities point to liquidity stress. The company’s ability to convert assets into cash quickly to cover liabilities is constrained, raising concerns about short-term solvency and ongoing operational funding.

4. Monitoring Points:

• Track changes in net current assets and liquidity ratios to assess cash flow improvements or deterioration.
• Monitor director loan balances for any changes indicating increased reliance on insider funding.
• Observe future filings for evidence of revenue recognition and trade debtor recovery.
• Watch for any overdue filings or changes in company status which might signal distress.