Online business checks ?

Z

Z4M-2006

Elite
 High Peak,Derbyshire.
So......

If a business has....

£65000 cash
£-121 net worth
£65000 assets
£190500 liabilities

Whats does it actually mean ?
 
Could mean anything depends what the assets are and more importantly what the liabilities are, and also on the accountant, there are different reasons to skew the reporting in each direction come the accounts filing date
 
So basically it doesn't mean a great deal?

Assets at £65000 and liabilities at £190,500 doesnt meant that the company is in the hole for £125k+ ?
 
Assets can be valued high or low so be wary of that , numbers suggest if they ceased trading tomorrow they would be owing £60500
 
There are different formulas for valuing assets so without knowing what the assets are it's difficult to state how accurate it is, some of them could be a debt from a client about to go under for example so could be written off by the next financial reporting.

Also liabilities could be anything from a credit card with a crap interest rate which.is quite a volatile liability, or it could all be directors loans that are not interest bearing and in no risk of being recalled

With so little information it's very difficult to make any kind of conclusion
 
Ahhh...

Well it's a property company with one director of that makes any kind of difference at all..

I just don't get the correlation between the numbers... It's a mystery to me...lol
 
If I look at my company, there are liablities listed that I don't have, so that must be an accountant's method - something like depreciation or so.
 
The cash is an asset so if cash and assets are the same that's the lot, not both added together, and with liabilities at £190,000 that doesn't look great. My accountants are creative, but they'd have to be Michaelangelo to make those figures look good!
 
Just looked again and there's something missing,.... net worth at -£121 doesn't add up to the sum of assets less liabilities..........
 
Z4M-2006 said:
Well it's a property company with one director of that makes any kind of difference at all..
Click to expand...

I have nothing to offer but a meaningless question that isn't really making a point. But can a limited company only have one director?

Out of interest, are you buying the company or is it yours?!
 
Is there a holding company? Sometimes a business will have another Ltd company that holds profits to protect them from any risk. This method can skew figures.
 
DumfriesDik said:
Z4M-2006 said:
Well it's a property company with one director of that makes any kind of difference at all..
Click to expand...

I have nothing to offer but a meaningless question that isn't really making a point. But can a limited company only have one director?

Out of interest, are you buying the company or is it yours?!
Click to expand...

You need just one director to form a Limited company

Z4M-2006, the easiest way to determine if you should do business with them is to check their credit rating, there are many companies out there that collate the company house data and issue a credit rating. We just received a £170k order from a company that has a £700 credit rating, we accepted the order with an upfront payment to mitigate some risk.
 
there is a few numbers missing, so that's why it doesn't make much sense...

but basically all your assets minus all your liabilities bring you to a net worth figure, this can be manipulated in many different ways though.

this is balanced off with your business capital plus (or minus) your cumulative profits for the years you have been in business.
 
Or pay for the extended business check, not the free one from companies house.
 
Do you not have to have a minimum of 1 Director and a Company Secretary to be legal?

And they can't be the same person.
 
Denis O said:
Do you not have to have a minimum of 1 Director and a Company Secretary to be legal?

And they can't be the same person.
Click to expand...

Does not seem to be:

https://www.gov.uk/limited-company-formation/overview
 
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