THE STONE BAKE(BRADFORD) LTD

Executive Summary

THE STONE BAKE(BRADFORD) LTD is a newly established micro-entity with a negative net asset position and significant working capital deficit, indicating poor liquidity and financial instability. Given the limited trading history and negative equity, the company currently lacks the financial strength to support credit facilities. Close monitoring of liquidity improvements and profitability will be essential before reconsidering credit exposure.

THE STONE BAKE(BRADFORD) LTD - Analysis Report

Company Number: 15047261

Analysis Date: 2025-07-29 14:16 UTC

1. Credit Opinion: DECLINE
   The company exhibits a negative net asset position of £10,819 at the year-end, with current liabilities (£25,480) significantly exceeding current assets (£4,509), resulting in a net current liability of £20,971. This negative working capital indicates an inability to meet short-term obligations from available liquid assets. The company is newly incorporated (2023) with only one financial year of data and very limited scale, which increases uncertainty and risk. The absence of profitability data and the negative equity position raise significant concerns over financial health and repayment capacity. Given these factors, the credit risk is high and approval for credit facilities is not advisable at this stage.

2. Financial Strength:
   The balance sheet shows fixed assets valued at £10,152 but current liabilities are more than double current assets, resulting in a negative net asset base (£-10,819). Shareholder funds match net assets, reflecting accumulated losses or initial capital shortfall. The company operates within the micro-entity threshold but has not generated sufficient capital or retained earnings to build a solid financial foundation. The negative equity position undermines financial strength and resilience.

3. Cash Flow Assessment:
   Current assets of £4,509 are insufficient to cover current liabilities of £25,480, implying a liquidity shortfall. This indicates tight or negative working capital and potential cash flow strain to meet creditors and operational expenses promptly. The company’s micro scale and limited operating history prevent confidence in stable cash inflows. No cash flow statement is provided but the balance sheet signals poor liquidity and reliance on external funds or director support.

4. Monitoring Points:

• Improvement in working capital: reduction of current liabilities and growth in current assets
• Positive profitability and accumulation of retained earnings to restore net asset position
• Cash flow from operations showing consistent positive net inflow
• Timely filing of accounts and confirmation statements to maintain compliance
• Director’s ongoing financial support or introduction of new capital to stabilize finances