PURE GLITTER LTD

Executive Summary

PURE GLITTER LTD exhibits a weak financial profile characterized by persistent negative net assets and insufficient liquidity to cover liabilities. The lack of fixed assets and operational employees further undermines creditworthiness. Given these conditions, the company is not currently a suitable candidate for credit approval without significant improvement or additional security.

PURE GLITTER LTD - Analysis Report

Company Number: 13548561

Analysis Date: 2025-07-29 20:19 UTC

1. Credit Opinion: DECLINE. PURE GLITTER LTD demonstrates a weak financial position with persistent negative net assets (shareholders' funds) reported as approximately -£9,800 across the last two years. The balance sheet shows current liabilities exceeding current assets, and a significant creditor balance labeled as amounts falling due after more than one year (£19,505), indicating long-term obligations likely unmet by current asset levels. The absence of fixed assets and zero employees raises concerns about operational capacity and asset backing. No audit is present due to micro-entity status, limiting detailed financial scrutiny. Given these factors, the company lacks the financial resilience and liquidity to reliably service new credit facilities.

2. Financial Strength: The company’s balance sheet reveals a consistent net liability position around -£9,800, primarily driven by liabilities exceeding assets. Current assets have decreased from £14,031 in 2023 to £9,872 in 2024, while current liabilities remain stable at about £19,500. No fixed assets are recorded, indicating no tangible long-term asset base. The company’s equity is negative, reflecting accumulated losses or debt exceeding assets. The financial trajectory appears stagnant or deteriorating without evidence of growth or improvement, which signals financial fragility.

3. Cash Flow Assessment: Liquidity is constrained; current liabilities outstrip current assets by a substantial margin, resulting in negative working capital. The company holds no fixed assets to leverage and no reported employees or turnover data to suggest operational cash inflows. The persistent overdraft or creditor balances indicate potential cash flow stress. Without positive working capital or operating cash flow, the ability to meet short-term obligations and debt servicing needs is doubtful.

4. Monitoring Points:

• Track changes in net current assets and net liabilities to detect any improvement or worsening.
• Monitor creditors’ aging profiles and whether long-term debts are being restructured or repaid.
• Observe any filings indicating changes in operational activities, employee headcount, or asset acquisitions.
• Review updated management commentary or strategic plans to assess turnaround efforts.
• Watch for any late filings or regulatory warnings that could signal distress.