SITE AND SEARCH LTD

Executive Summary

SITE AND SEARCH LTD exhibits a significant deterioration in financial health over the past year, with net assets and working capital sharply reduced, indicating elevated credit risk and potential liquidity challenges. Given the micro-entity scale and limited equity, the company currently lacks sufficient financial strength to safely support additional credit without mitigating conditions. Close monitoring of liquidity and operational performance is essential if credit is extended.

SITE AND SEARCH LTD - Analysis Report

Company Number: 13155384

Analysis Date: 2025-07-29 21:07 UTC

1. Credit Opinion: DECLINE. The company’s financial position has deteriorated significantly in the latest year ending March 2024. Net assets plummeted from £6,847 in 2023 to only £373, indicating a severe erosion of equity. Additionally, current liabilities remain high relative to current assets, causing working capital to shrink drastically from £6,483 to merely £553. This sharp decline suggests potential liquidity stress and an inability to comfortably meet short-term obligations. Given the micro-entity scale and limited capital base (£2 share capital), the risk of default or inability to service credit facilities is elevated.

2. Financial Strength: The balance sheet shows a worrying trajectory. Fixed assets halved from £1,324 to £780, and current assets fell from £16,680 to £9,309, reflecting shrinking operational scale or asset disposals. Current liabilities remain substantial (£9,540), leading to a net current asset position that is barely positive. Total net assets fell by approximately 95%, eroding shareholders’ funds to a minimal level. Such a weakened equity buffer undermines financial resilience and increases vulnerability to economic shocks.

3. Cash Flow Assessment: The markedly reduced net current assets indicate constrained liquidity. The company’s ability to generate sufficient cash to cover immediate liabilities is limited, which could lead to payment delays or reliance on external financing. No detailed cash flow statement is provided, but the decline in current assets and net assets strongly suggests working capital pressures. The micro company status and only 2 employees imply limited operational scale to absorb financial stress.

4. Monitoring Points:

• Track quarterly cash flow and working capital trends closely to detect any worsening liquidity issues.
• Monitor creditor payment terms adherence and any instances of late payment or supplier disputes.
• Watch for any director or management changes that may impact business continuity or financial control.
• Review subsequent annual accounts and interim management reports for signs of recovery or further decline.
• Assess any new borrowing or guarantees that might strain financial capacity.