SOLID SHEDS LIMITED
Company number 07398276 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Risk Rating: HIGH
The company is technically solvent, but the margin is very thin. Net assets of £29,841 represent only around 2.9% of total assets, and cash resources are minimal against more than £1m of short-term liabilities. The 2024 accounts show some improvement, but the balance sheet remains vulnerable to modest adverse trading or inventory write-downs.
Key Concerns
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Acute liquidity pressure - Cash at bank is only £34,263 against current liabilities of £1,025,875. - The quick ratio is approximately 0.17, meaning liquid assets cover less than 18% of debts due within one year. - Working capital is negative at -£4,670, so the company relies on stock conversion and creditor forbearance to meet obligations as they fall due.
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Thin capital buffer and high inventory concentration - Net assets of £29,841 provide limited protection against losses. - Stocks of £847,571 account for roughly 83% of total assets. If inventory is overstated, impaired, or slow-moving, the solvency position could deteriorate quickly. - A relatively small impairment or trading loss could eliminate shareholders' funds entirely.
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Deteriorating cash conversion trend - Cash has fallen from £336,464 in 2020 to £34,263 in 2024, while stock levels have remained high. - Total current liabilities, although reduced, remain above total current assets. - Employee numbers fell from 70 to 61 between 2023 and 2024, suggesting possible contraction in activity or efficiency changes that need explanation.
Positive Indicators
- The company is active and has no overdue accounts or confirmation statement filings.
- Net assets improved from £785 in 2023 to £29,841 in 2024, and the working capital