Company Number: 13477333

Analysis Date: 2025-07-29 15:31 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   NC Touring Park Ltd shows ongoing operations with a recent full set of accounts filed on time, which reflects compliance and operational transparency. However, the company has net liabilities (£38,602 deficit) and significant director loans (£409,785) that are interest-free and without fixed repayment terms, indicating reliance on related party funding. The bank loan is secured on fixed assets but has a sizeable balance (£209,872 total across current and long-term). Credit approval should be conditional on continued director support and monitoring of cash flow improvements to ensure repayment capacity.

2. Financial Strength:
   The balance sheet reveals total fixed assets of £593,280, mostly in land and buildings (£413,987), providing solid collateral backing. Current assets are low (£30,291), leading to net current liabilities of £441,635, which is a concern for short-term liquidity. The company has net liabilities overall, driven by director loans and bank debt. Shareholders’ funds are negative, indicating that accumulated losses exceed equity. While tangible asset backing is strong, the capital structure is weak with a reliance on director funding and external loans.

3. Cash Flow Assessment:
   Cash at bank is minimal (£500) compared to short-term liabilities (£471,926), suggesting tight liquidity. Debtor balances increased to £21,266 from £12,567, which may improve cash flow if collected promptly. The company employs 11 people, down from 13, which may indicate some cost control. The lack of fixed repayment terms on director loans provides short-term flexibility but limits external creditor security. The directors’ confirmation of continuing support and loan availability is key to cash flow stability.

4. Monitoring Points:

• Liquidity ratios, especially current ratio and quick ratio, to track short-term solvency improvements.
• Director loan balances and any changes to their terms or repayment status.
• Bank loan covenant compliance and repayment schedules.
• Operating performance trends in turnover and profitability once available (not disclosed in current accounts).
• Any changes in asset valuations or impairments to tangible fixed assets.
• Timely filing of future accounts and confirmation statements to maintain compliance.