Company Number: 13712488

Analysis Date: 2025-07-20 12:49 UTC

1. Credit Opinion: DECLINE. The company’s financials show a significant negative net current assets and net liabilities position, which indicates strained liquidity and working capital. Despite being active with a clear ownership structure, the micro-entity’s balance sheet reveals worsening financial health from 2022 to 2023, with net liabilities increasing from £2,960 to £19,946. This raises concerns about its ability to meet short-term obligations and service any new credit facilities without additional financial support.

2. Financial Strength: The balance sheet shows fixed assets growing modestly (£4,590 in 2022 to £5,176 in 2023). However, current liabilities have nearly tripled from £11,150 to £31,768, while current assets only increased marginally from £3,600 to £6,646. This results in a negative net current asset position of -£25,122 in 2023, a deterioration from -£7,550 in 2022. The company’s net assets and shareholders’ funds are negative and declining, eroding equity and indicating financial weakness. The micro-entity size reflects modest operations (1 employee), but the balance sheet health suggests ongoing funding pressure.

3. Cash Flow Assessment: The large negative working capital position indicates cash flow constraints. Current liabilities far exceed current assets, exposing the company to liquidity risk and potential difficulties in meeting short-term debts as they fall due. Without positive cash flows or external funding, the company’s ability to operate sustainably is questionable. The absence of detailed cash flow statements limits full assessment, but the balance sheet alone suggests tight liquidity.

4. Monitoring Points:

• Track current liabilities and attempt to reduce short-term debt to improve liquidity.
• Monitor cash flow trends closely, especially cash generation from operations.
• Review any contingent liabilities or off-balance-sheet obligations.
• Watch for director or shareholder capital injections or external financing.
• Assess any changes in accounts payable aging and debtor collection efficiency.
• Observe market and industry conditions affecting equine sales and services.