Company Number: 13138278

Analysis Date: 2025-07-29 20:50 UTC

1. Credit Opinion: DECLINE
   Lobo Bobo Ltd demonstrates a persistent negative equity position and worsening net current liabilities over the last three years. The company’s shareholders’ funds have deteriorated from -£322 in 2021 to -£21,525 in 2024. This indicates ongoing losses or accumulated deficits with no sign of profitability or capital injection to restore financial health. The negative net current assets suggest the company lacks sufficient liquid resources to cover short-term obligations, raising concerns over its ability to service debt or meet trade creditors on time. Given the micro-entity status and absence of employees, the business appears very small-scale with limited operational capacity and resilience. Without evidence of turnaround or improved cash flows, extending credit facilities would present a high risk.

2. Financial Strength:
   The balance sheet reveals very weak financial structure. Fixed assets are minimal (£1,196) and do not provide collateral value. Current liabilities (£37,389) significantly exceed current assets (£14,668), leading to net current liabilities of £22,721. Total liabilities surpass total assets by £21,525, resulting in negative shareholders’ funds of the same amount. The company has no equity cushion to absorb losses or support growth. The low share capital of £2.00 also indicates limited owner investment. Overall, the financial strength is poor and the company shows signs of financial distress.

3. Cash Flow Assessment:
   Current assets mainly comprise cash and debtors but are insufficient to meet short-term liabilities, indicating liquidity strain. The net current liabilities position signals negative working capital, which is a red flag for ongoing operational cash flow issues. The absence of employees suggests minimal payroll obligations but also limited revenue-generating capacity. The company’s financial statements do not report profit or cash flow figures, but the worsening balance sheet implies negative cash flow from operations or accumulated losses. There is likely reliance on external funding or director support to sustain operations.

4. Monitoring Points:

• Net current assets and working capital trends to detect any improvement or further deterioration
• Shareholders’ funds and equity injections to assess capital structure strengthening
• Payment history and creditor aging reports to review timely settlement of liabilities
• Directors’ reports or filings for any plans on restructuring, refinancing, or business turnaround
• Any changes in business scale, employee numbers, or revenue streams that could affect credit risk