NETHERTON TECH PARK LTD

Executive Summary

Netherton Tech Park Ltd is currently in a financially distressed state with significant negative net assets and poor liquidity, rendering it unable to support new credit facilities. The company’s liabilities have grown sharply while its asset base remains static, resulting in a highly leveraged and insolvent position. Without substantial capital support or restructuring, the credit risk is high, and approval for new lending is not recommended.

NETHERTON TECH PARK LTD - Analysis Report

Company Number: 13051084

Analysis Date: 2025-07-29 14:16 UTC

1. Credit Opinion: DECLINE
   Netherton Tech Park Ltd exhibits significant financial distress, as evidenced by large negative net assets and increasing current and long-term liabilities. The company's net liabilities worsened markedly from £156k in 2023 to £868k in 2024, driven by substantial growth in creditors both within and beyond one year. The absence of employees and minimal current assets (£258) severely restrict liquidity. Given these factors, the company lacks the financial capacity to service new credit facilities reliably without substantial restructuring or capital injection.

2. Financial Strength:
   The balance sheet shows a stable fixed asset base of approximately £299k but is heavily outweighed by liabilities. Current liabilities almost doubled from £255k to £688k in one year, creating a net current liability position of £479k. Long-term creditors also increased significantly. Shareholders’ funds are deeply negative at £867k, indicating accumulated losses and eroded capital. Overall, the company’s financial strength is weak, with a highly leveraged and insolvent position.

3. Cash Flow Assessment:
   Current assets are negligible and do not cover current liabilities, indicating poor liquidity and working capital deficiency. The lack of employees and minimal current assets suggest limited operational cash flow generation. No evidence of cash reserves or receivables to support ongoing expenses or debt repayments is apparent. This weak cash flow position raises concerns about the company’s ability to meet short-term obligations or sustain operations without external funding.

4. Monitoring Points:

• Track changes in current liabilities and creditor terms to assess worsening or improvement in working capital management.
• Monitor cash balances and current assets for any liquidity improvement.
• Review management actions for capital restructuring or debt renegotiation.
• Evaluate any changes in business activity or asset disposals that may enhance financial stability.
• Watch for director changes or corporate actions indicating turnaround efforts.