TWO MOORS EQUESTRIAN LIMITED

Executive Summary

Two Moors Equestrian Limited is a newly formed micro entity with a negative net asset position and poor liquidity indicators. The current financial data shows an inability to meet short-term liabilities with minimal current assets, raising significant credit risk. Credit is not advisable until the company demonstrates improved financial stability and operating cash flow.

TWO MOORS EQUESTRIAN LIMITED - Analysis Report

Company Number: 14402164

Analysis Date: 2025-07-20 14:10 UTC

1. Credit Opinion: DECLINE
   Two Moors Equestrian Limited is a recently incorporated micro private limited company with no employees and very limited trading history. Its latest filed accounts show a negative net asset position (£-3,218) and negative working capital (£-3,038), indicating an undercapitalised and financially fragile state. The company’s current liabilities significantly exceed its current assets, suggesting an inability to meet short-term obligations from available resources. Without evidence of positive cash flow or profitability, the risk of default on credit facilities is high. The absence of trading results or profitability data further clouds the assessment of its debt servicing capacity. Given these factors and the company's infancy, extending credit is not recommended at this stage.

2. Financial Strength:
   The balance sheet as at 31 October 2023 reveals negligible current assets (£49) compared to current liabilities (£3,087), resulting in negative net current assets of £-3,038. Total net assets are negative at £-3,218, reflecting accumulated losses or initial funding shortfall. There are no fixed assets reported. Shareholders’ funds are negative, indicating that the company’s liabilities exceed its assets and equity base. This weak financial position undermines the company’s financial resilience and buffer to absorb losses or adverse events.

3. Cash Flow Assessment:
   The micro-entity accounts do not provide a cash flow statement, but the very low current asset level (only £49) and significant short-term liabilities imply liquidity constraints. Negative working capital suggests reliance on external funding or creditor extensions to finance operations. The company’s ability to generate positive operating cash flow is unproven. The lack of employees and trading data further limits insight into operational cash generation.

4. Monitoring Points:

• Future trading results and profitability once operational for evidence of positive cash flows.
• Improvement in working capital and net asset position to reduce liquidity risk.
• Timely submission of accounts and confirmation statements to track ongoing compliance and financial health.
• Any external funding or capital injections to strengthen balance sheet.
• Directors’ plans and business model viability given the negative equity and current liabilities.