Company Number: 13519269

Analysis Date: 2025-07-20 12:23 UTC

1. Credit Opinion: DECLINE. The company shows a significant liquidity shortfall with large negative net current assets (£-50,607 as of July 2024) and current liabilities far exceeding current assets. The working capital deficit signals an inability to cover short-term obligations from available liquid resources. The net assets have also sharply declined from £13,711 in 2023 to £2,255 in 2024, indicating erosion of the financial buffer. These factors raise concerns about the company’s capacity to service debt or meet commercial commitments without additional capital support or restructuring.

2. Financial Strength: The balance sheet shows a small positive net asset position (£2,255), but this is marginal and has deteriorated significantly from the prior year (£13,711). Fixed assets (net £52,862) provide some tangible backing, but the large current liabilities (£51,180) and negative working capital undermine overall financial stability. The absence of debt beyond short-term borrowings and overdrafts is positive, but the current liabilities composition includes significant "other creditors" (£28,649) which may be unsecured or trade-related. The company’s equity base is very thin, limiting its ability to absorb shocks.

3. Cash Flow Assessment: Cash on hand is minimal (£573), indicating very tight liquidity. The company’s current liabilities exceed current assets by a wide margin, suggesting working capital constraints and potential cash flow difficulties. Negative trade debtors in 2024 implies possible accounting adjustments or write-offs, further clouding receivables quality. The increase in creditors and significant other creditors suggest the company may be relying on supplier credit or delayed payments to manage cash flow. Overall, liquidity risk is high.

4. Monitoring Points:

• Monitor cash flow closely given minimal cash reserves and high current liabilities.
• Review ageing of creditors and nature of "other creditors" to assess payment terms and risk.
• Track net asset and working capital trends for further deterioration or improvement.
• Observe any changes in director or shareholder funding or external financing.
• Keep watch on contract pipeline and revenue generation to improve liquidity.
• Investigate debtor balances and credit control effectiveness.