Company Number: 13638416

Analysis Date: 2025-07-29 13:42 UTC

1. Credit Opinion: DECLINE
   Teriot Commercial Ltd shows a weak financial position with persistent net liabilities and negative working capital, indicating an inability to meet short-term obligations comfortably. The current liabilities significantly exceed current assets by £71,031 in the latest year, worsening from the prior year. The net asset deficit has nearly doubled to £22,197, reflecting erosion of equity. The company is in a highly leveraged position with large creditor balances relative to its asset base. Without profitability data or cash flow generation, there is no evidence that the company can service debt or improve liquidity. Given the micro-entity size, limited operational scale, and lack of employees, business resilience appears low. The director is the sole significant controller, which concentrates operational and financial risk. Overall, the financial weakness and lack of positive indicators warrant a decline on credit grounds.

2. Financial Strength:

• Fixed assets remain stable at £380,000, representing the main asset base.
• Current assets are minimal (£20-23k) and insufficient to cover current liabilities (£330-360k).
• Net current liabilities have increased from £30,457 to £71,031, indicating worsening liquidity.
• Net assets are negative and deteriorating, from -£10,982 to -£22,197 over the last reported years.
• Shareholders funds mirror net asset deficits, signaling accumulated losses or negative reserves.
  This balance sheet profile shows poor financial strength, considerable leverage, and potential going concern concerns if liabilities come due.

3. Cash Flow Assessment:

• No direct cash flow statements are provided, but the negative net current assets point to liquidity stress.
• Current liabilities exceed current assets by over £70k, making it challenging to meet short-term payments without refinancing or additional capital injection.
• Lack of employees and operational scale suggests limited internal cash generation capacity.
• Absence of audit or detailed profit and loss information limits insight into operational cash flow trends.
  Liquidity is weak, and working capital management needs close monitoring.

4. Monitoring Points:

• Quarterly review of cash position to detect liquidity deterioration or improvement.
• Monitoring creditor days and any overdue payments to suppliers or lenders.
• Watch for any capital injections or refinancing efforts to shore up working capital.
• Regular updates on accounts filings and any changes in director or control structure.
• Any indication of operational revenue growth or profitability that could strengthen cash flows.
• Alerts on overdue tax, VAT, or other statutory liabilities that could trigger enforcement action.