TREEBIRD LTD

Executive Summary

TREEBIRD LTD exhibits significant liquidity constraints with negative net current assets and minimal financial resources. The company’s micro scale and adverse balance sheet position undermine its ability to service debt or meet payment obligations. Credit facilities are not recommended without substantial improvement in financial health or capital structure.

TREEBIRD LTD - Analysis Report

Company Number: 14046540

Analysis Date: 2025-07-19 12:04 UTC

1. Credit Opinion: DECLINE
   TREEBIRD LTD shows a negative working capital position (current liabilities significantly exceed current assets) with net current liabilities of £4,828 as of April 2024, worsening from £4,400 the previous year. This indicates a liquidity shortfall and inability to cover short-term obligations from current assets. The company is very small (micro-entity) with limited financial data and no audit, which adds uncertainty. The consistent negative net working capital and absence of substantial assets or profits suggest weak capacity to service debt or meet credit terms. The single director and shareholder controls the company fully, which can concentrate risk. Given this financial fragility and lack of positive cash flow indicators, extending credit is not advisable.

2. Financial Strength:
   The company’s balance sheet is very weak. Current assets are minimal (£234) compared to current liabilities of over £5,000, resulting in negative net current assets and net liabilities of £4,828. No fixed assets or reserves are reported to offset liabilities. Shareholders’ funds are negative and deteriorating. The company shows no sign of growth or accumulation of retained earnings since incorporation in 2022, maintaining roughly the same liability level. The micro size and minimal financial resources limit operational flexibility and ability to absorb shocks.

3. Cash Flow Assessment:
   With one employee and minimal current assets, liquidity is severely constrained. The negative working capital position signals potential cash flow difficulties to meet short-term obligations. No cash or significant receivables are shown, implying limited cash inflows. Without additional capital injection or improved revenue generation, the company is unlikely to maintain a positive cash flow and may default on creditors if extended credit.

4. Monitoring Points:

• Watch for any improvement in current assets or reduction in current liabilities in subsequent filings.
• Monitor director or shareholder capital injections or changes in control.
• Track any material changes in business scale or financial performance reported in future accounts.
• Review filing timeliness and any emerging creditor disputes or insolvency indicators.