Company Number: SC733018

Analysis Date: 2025-07-29 14:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   POSSILPARK BID LIMITED is a micro-entity, limited by guarantee, with no share capital and minimal financial activity. The company shows a negative net asset position due to provisions for liabilities which have increased the liabilities side, but it maintains positive net current assets, indicating some short-term liquidity. The company has a very limited asset base and only one employee, which constrains business scale and diversification. The recent director changes, including the appointment of a finance director, suggest an effort to strengthen management. Credit approval is recommended with conditions, such as monitoring future cash flow and financial performance closely due to the company's early stage and limited financial buffer.

2. Financial Strength:

• The balance sheet as at 31 May 2024 reports current assets of £3,243 and net current assets of the same amount, indicating no current liabilities.
• However, provisions for liabilities amount to £5,286, resulting in total net liabilities of £2,043 (negative shareholders’ funds). This highlights potential contingent or expected obligations impacting net worth.
• Compared to the prior year, current assets and net current assets have decreased significantly (£7,579 to £3,243), and provisions for liabilities have reduced slightly (£8,022 to £5,286), resulting in a worsening net asset position.
• No fixed assets are recorded, limiting collateral value.
• Overall, the company has a fragile financial foundation with negative equity driven by provisions, showing limited financial strength.

3. Cash Flow Assessment:

• The company maintains positive net current assets, indicating some liquidity to meet short-term obligations.
• The drop in current assets year-on-year is a concern, potentially reflecting reduced cash or receivables.
• With only one employee and minimal operational scale, cash burn is presumably low, but ongoing ability to meet creditor demands depends on maintaining or improving liquidity.
• No detailed cash flow statement is available, so cash generation capacity is unclear. Close attention should be paid to working capital trends and creditor aging.

4. Monitoring Points:

• Track changes in provisions for liabilities to assess risk exposure and impact on net assets.
• Monitor current asset levels, especially cash balances, to ensure liquidity remains sufficient.
• Review any incoming or outgoing related party transactions or guarantees, given the limited asset base.
• Keep watch on director appointments and management changes for signs of improved financial governance or emerging risks.
• Monitor the filing of accounts and confirmation statements to ensure regulatory compliance.