Hi all... I am keeping this anonymous due to the possible ramifications. I am no accountant so would like to have some the opinion of one please, as i am using anonymous it will not be held against you so just a quick opinion would help me considerably. These are 2014 figures Cash £42,243 Net Worth £-109,096 Current Liabilitys £971,378 Current Assets £895,734 So is this company healthy ???
Have got the last 5 years including 2014 and the Net woth has started to increase and the Assets have dropped. In 2012 it looked bad as the cash was down to £8,558 and the networth was £-153,009.
42 grand in cash and a negative equity of 75k? i'd say its quite unhealthy (without having seen how the previous years compare)
Its a Building materials and supplies retailer Will try and get the last 4 years on here as its not that bloody easy to remove it from a Spreadsheet and get it formatted
OK each coresponding year. 2010 Cash £59,159 Net Worth £11,537 Current Liability £554,126 Current Assets £553,483 2011 Cash £20,706 Net Worth £-72,610 Current Liability £1,199,117 Current Assets £1,062,533 2012 Cash £8,558 Net Worth £-153,009 Current Liability £991,209 Current Assets £819,260 2013 Cash £54,187 Net Worth £-131,796 Current Liability £1,148,687 Current Assets £1,066,823
It depends how honest the company is being. It's got decent assets despite the liabilities, what we don't know are the figures being used for the value of the assets. I've seen companies list the purchase price, not the realisation value. So the property may have been bought 20 years ago for £250k but it could be worth £1.1m now. It's a bit of a scam done for a number of reasons but it's legit. On the information you've provided the net worth is -£33,401 Turnover figures and gross profit would be helpful. It could be a very healthy company which is drawing large directors dividends or putting large sums aside for investment or maybe in the process of purchasing stock or plant. They may have over played depreciation or debts due. So the real question is why you want to know. Are you going to use them? If so there are steps you can take to limit your exposure.
Its an aquatances company and he has asked if i wanted some of the profits, as I said before this is a Pie in the Sky thing and just thought I would do some background before we go any further, I appreciated that yes he could be being very easy on the truth to help with the total dividend that he claimes. Many thanks for the imput so far its amazing the diffrent ways that accountans can hid cash flow.
seems mine an stu's anonymity has been compromised here am off to contact the european court of human rights
Not really enough info as others have said. My concerns would be (just taking the 2014 figures as an example: They are technically insolvent as their current assets are smaller than their current liabilities (net liabilities of 75,644). Current items being all the tings used up in 1 year, so for assets that would be stock, cash and receivables (people who owe them money) For liabilities that would be for outstanding payables (people they owe money to for stock etc) the tax man, and bank overdraft. So this means that they technically can't afford to pay their bills as they fall due, bear in mind that stock and receivables do not necessarily turn into cash quickly. There is no mention of Non-current assets, eg buildings, plant and machinery etc, but the net worth figure indicates the following: Total net worth -109096 Net liabilities - 75644 Other liabilities -33452 So overall from those figures there is more debt there or something, so even if they have got property etc, the other long term liabilities exceed that value too. The point made above about the market value of property is valid, but we can't see that from the figures
I assume you have the company name, so a companies house webcheck search will allow you to download the last few years accounts for some more detail around the numbers. I think the documents used to be £1 each but I've not been on there for a while.
Guys, thanks for all this and its been an eye opener to say the least. This mate has been bragging on how he is able to do certain things and live at a standard of life that I cannot currently enjoy, looks like his money is his companys money and time will tell on how long that lasts. I love this forum for its helpfullnes and general attitude towards what could be a very bad choice. You guys are the best and thanks very much for you comments Trouble
If he's doing so well why would he ask you to invest your money in the business? Why ask for investment if he's as cash rich as he's suggesting he is?
