PADDLE THE DART LTD

Executive Summary

Paddle The Dart Ltd currently exhibits financial weakness marked by negative working capital and net liabilities, raising concerns about its ability to meet short-term debts. The company’s micro scale and limited asset base reduce creditworthiness, suggesting credit facilities should be declined or strictly conditional on significant owner support or security. Close monitoring of liquidity and operational cash flows is essential if credit is extended.

PADDLE THE DART LTD - Analysis Report

Company Number: 13499176

Analysis Date: 2025-07-20 12:15 UTC

1. Credit Opinion: DECLINE
   Paddle The Dart Ltd shows a weak financial position with net current liabilities of £13,218 as at 31 July 2023, deteriorated from £2,320 the previous year. This indicates an inability to meet short-term obligations from current assets alone. The company’s micro-entity scale and single director ownership limit diversification and resilience. No audit or detailed cash flow data is available, but the negative working capital raises concerns about liquidity and operational cash flow sufficiency to service new credit facilities.

2. Financial Strength:
   The balance sheet reveals a net liability position, with current liabilities exceeding current assets by over £13k, representing a negative working capital situation. Shareholders’ funds are negative, implying accumulated losses or insufficient equity injection. The company operates in a niche leisure rental market, which may be seasonal and vulnerable to economic fluctuations. There is no evidence of fixed assets to offset liabilities, limiting collateral value. The single director/shareholder structure concentrates control but may also risk limited financial oversight.

3. Cash Flow Assessment:
   Current asset levels (£21,031) are insufficient to cover current liabilities (£34,249), reflecting potential cash flow strain. The absence of detailed profit and loss or cash flow statements prevents full assessment, but the negative net current assets suggest operational cash inflows are likely inadequate to cover creditor payments without additional financing or owner support. The micro size and a single employee further indicate limited operational scale and flexibility to improve cash flow rapidly.

4. Monitoring Points:

• Monitor quarterly cash flow and bank balances closely to identify liquidity pressures early.
• Track changes in creditors and debtors to assess working capital cycle improvements or deterioration.
• Review director’s loans or shareholder injections which may be required to support operations.
• Watch for timely filing of accounts and confirmation statements to ensure compliance and transparency.
• Observe market conditions affecting leisure boat hire and potential impacts on revenue stability.