TOP RED CVS LTD

Executive Summary

Top Red Cvs Ltd exhibits deteriorating financial health with negative net assets and working capital deficits, indicating liquidity challenges. The company’s small scale and minimal capital base limit its ability to absorb financial stress, resulting in a high credit risk profile. Without evidence of turnaround or capital support, credit extension is not recommended at this time.

TOP RED CVS LTD - Analysis Report

Company Number: 14265876

Analysis Date: 2025-07-20 19:07 UTC

1. Credit Opinion: DECLINE
   Top Red Cvs Ltd’s latest financials reveal a weakening financial position with net liabilities of £1,009 as of July 2024, compared to net assets of £1,100 the previous year. The company exhibits negative working capital (£-3,206), indicating potential liquidity stress and insufficient current assets to cover short-term liabilities. The micro-entity scale and minimal share capital (£2) further constrain financial flexibility. Given these factors and the company’s limited operational scale (average 1 employee), credit risk is elevated. Without evidence of improving cash flow or additional capital injection, extending credit facilities is not advisable at this stage.

2. Financial Strength:
   The balance sheet shows a decline in net assets from £1,100 in July 2023 to negative £1,009 in July 2024. Fixed assets are minimal (£2,197), and current liabilities have doubled from £7,814 to £15,741 over the year, outpacing increases in current assets. The company’s equity position has turned negative, reflecting accumulated losses or increased liabilities. The limited capital base and negative net working capital suggest weak financial resilience.

3. Cash Flow Assessment:
   Cash data is only available for 2023 (£3,506), with no updated cash figure for 2024. The significant increase in current liabilities without a corresponding increase in current assets implies tighter liquidity. Negative net current assets highlight a working capital deficit, raising concerns about the company’s ability to meet short-term obligations promptly. The reduction in staff and low asset base also limit operational cash generation capacity.

4. Monitoring Points:

• Watch for updated cash flow statements or management accounts to assess liquidity trends.
• Monitor changes in current liabilities and efforts to reduce short-term debt.
• Observe any capital injections or equity restructuring to restore positive net assets.
• Track operational performance and revenue growth for signs of improved cash generation.
• Review director and shareholder activity for any changes in ownership or control that might affect financial support.