Company Number: 13990201

Analysis Date: 2025-07-20 11:14 UTC

1. Credit Opinion: DECLINE
   RELM BESPOKE LTD exhibits significant financial distress with large and growing net current liabilities and negative shareholders' funds. The company’s current liabilities have nearly doubled from £150,593 in 2023 to £287,734 in 2024, while current assets have decreased slightly, resulting in a worsening working capital deficit of £257,267. The negative net assets of £200,632 indicate insolvency on a balance sheet basis. The company is unable to cover short-term obligations with readily available assets, which strongly suggests an inability to service new or existing debt.

2. Financial Strength:
   The balance sheet shows weak financial health. Fixed tangible assets have increased moderately (£48,234 to £56,635), indicating some investment in plant and machinery, but this is overshadowed by the substantial increase in current liabilities. The company’s equity position remains deeply negative (£-62,590 in 2023 to £-200,632 in 2024), reflecting accumulated losses and a deteriorating capital base. The very minimal cash balance (£467) compared to high creditors signals liquidity risk. Overall, the company is financially fragile with poor solvency metrics.

3. Cash Flow Assessment:
   Liquidity is a key concern. Cash on hand has fallen sharply from £9,769 to £467, leaving very limited immediate cash resources. Debtors remain static at £30,000, suggesting limited growth or collection issues. The large creditor balance (£287,734) and bank loans (£4,677) require prompt settlement, yet the company has insufficient working capital. Without clear cash inflows or financing, the company faces difficulty meeting short-term commitments, implying weak operational cash flow and potential reliance on external funding or director support.

4. Monitoring Points:

• Monitor current liabilities and creditor payments closely for any signs of missed payments or defaults.
• Track cash flow trends monthly to assess operational liquidity and potential need for emergency funding.
• Review debtor collection efficiency to improve cash conversion cycle.
• Watch for any changes in shareholder funding or director loans that may affect solvency.
• Evaluate any new financial statements for improvements or further deterioration in net assets and working capital.