Company Number: 13150808

Analysis Date: 2025-07-29 12:43 UTC

1. Credit Opinion: DECLINE
   Ansloos Leisure Ltd presents significant credit risk due to its deteriorated financial position in the latest fiscal year ending December 2023. The company moved from positive net assets (£16,270) to substantial net liabilities (-£128,099) within less than a year. This decline is primarily driven by a sharp increase in current liabilities and long-term creditors, indicating rising indebtedness and liquidity pressures. The negative working capital position (-£47,946) suggests the company may struggle to meet short-term obligations without additional support. Although directors have provided loans to maintain going concern, this reliance on insider funding is a red flag for external creditors. Given these factors, new credit facilities should be declined until financial stability is restored.

2. Financial Strength:
   The balance sheet reveals weakening financial strength. Fixed assets increased from £18,839 to £58,126, reflecting capital investments, but this has been financed by increased liabilities rather than equity. Current liabilities have tripled from £57,299 to £174,174, and long-term creditors also rose significantly from £51,308 to £135,398. The company’s net asset position turned negative, with shareholders' funds eroding from a positive £16,270 to a deficit of £128,099. The large increase in “other creditors” within current liabilities (from £18,252 to £138,523) and long-term creditors raises concerns about creditor concentration and terms. Overall, the company is highly leveraged and financially fragile.

3. Cash Flow Assessment:
   Cash balances improved modestly from £5,570 to £15,738 but remain low relative to current liabilities. Debtors reduced from £55,849 to £35,490, which may indicate tighter credit control or reduced sales. Stock levels increased to £75,000, tying up working capital in inventory. The net current asset deficit (-£47,946) signals liquidity stress, impairing the company's ability to cover short-term debts. The company’s dependency on director and related-party loans as noted in the accounts signals insufficient internal cash generation to support operations and obligations. Liquidity risk is high without external or internal cash injections.

4. Monitoring Points:

• Monitor cash flow statements closely when available to assess operational cash generation.
• Track changes in trade creditors and “other creditors” to understand creditor terms and risk concentration.
• Watch for any further deterioration in net assets or working capital deficits in future filings.
• Review director loan balances and any changes in related-party support arrangements.
• Assess turnover trends and gross margins as indicators of operational performance and ability to improve liquidity.