Company Number: 13272870

Analysis Date: 2025-07-20 12:53 UTC

1. Credit Opinion: DECLINE
   Stirling Personal Development Ltd displays significant financial distress with persistent and increasing net liabilities and negative shareholders' funds. The company is reliant on director funding to continue operations, indicating poor internal cash generation and weak financial resilience. Current liabilities substantially exceed current assets, raising concerns about the company's ability to meet short-term obligations without external support. Given the negative net assets and ongoing reliance on director loans, extending credit would carry high risk.

2. Financial Strength:
   The balance sheet shows deteriorating financial health over the last four years. Net assets worsened from -£9,350 in 2021 to -£21,798 in 2024. Fixed assets are minimal (£7,366) and largely intangible (franchise fee), which limits collateral value. Share capital is negligible at £2. The company’s negative equity position, growing retained losses, and lack of cash reserves indicate weak capitalization and solvency risk.

3. Cash Flow Assessment:
   Cash at bank is virtually depleted (£14 as of 2024 year-end), and net current liabilities stand at -£29,164, highlighting poor liquidity and working capital deficits. The company’s operations are not generating sufficient cash, and it depends on director loans for funding. Trade creditors are minimal, but other creditors and accruals are substantial and increasing, reflecting strained creditor relationships and cash flow pressure.

4. Monitoring Points:

• Track net current liabilities and cash balances to detect worsening liquidity.
• Monitor director loan balances and any changes in funding support.
• Review turnover and profitability trends to assess operational improvement.
• Watch for overdue filings or changes in director conduct that may impact governance.
• Assess any strategic plans to improve financial position or raise capital.