RETRO BOOKS LTD

Executive Summary

Retro Books Ltd is currently in a financially distressed state with sustained negative net assets and poor liquidity. The company lacks operational scale and cash flow to support credit facilities, posing a high risk to lending. Without significant improvements, credit approval is not recommended.

RETRO BOOKS LTD - Analysis Report

Company Number: 12499312

Analysis Date: 2025-07-20 11:43 UTC

1. Credit Opinion: DECLINE
   Retro Books Ltd shows a weak financial position with negative net assets of £468 as at 31 March 2024, deteriorating from negative £1,376 the prior year. The company has minimal cash (£259) and current liabilities of £727, resulting in negative working capital. There is no reported revenue or employees, indicating lack of operational scale or growth. The persistent losses and negative equity signal an inability to service debt or sustain credit facilities reliably. Without significant operational improvements or capital injection, credit risk is high.

2. Financial Strength:
   The balance sheet is fragile. Shareholders’ funds are negative (£468), and net current assets are negative indicating insufficient current assets to cover short-term liabilities. The company’s net assets remain negative, reflecting accumulated losses. The minimal share capital (£1) provides no buffer. Lack of fixed assets or investments further weakens the financial base. The company's classification as a small private limited company aligns with its scale, but current financial metrics show poor capital structure and solvency concerns.

3. Cash Flow Assessment:
   Cash on hand is negligible at £259, barely enough to cover a fraction of current liabilities (£727). The negative net current assets indicate working capital deficiency. Absence of employees suggests very limited or no ongoing trading activity, which may constrain cash inflows. The company’s liquidity position is weak, raising concerns about its ability to meet short-term commitments or unexpected expenses without external funding.

4. Monitoring Points:

• Monitor quarterly cash flow statements for any signs of revenue generation or improved liquidity.
• Watch for capital injections or equity restructuring to restore positive net assets.
• Keep track of any changes in current liabilities or creditor terms that might exacerbate liquidity stress.
• Review director's reports or filings for plans addressing negative equity and operational viability.
• Check for any late filings or regulatory issues that could signal governance or operational challenges.