Looking to do business with a Company.. but
Discussion
I'm looking to get involved with a Company, I've only looked at the free info available via the Internet, and to be honest I'm not sure what I'm looking at when I see the following.
"The combined cash at bank value for all businesses where xxxxx holds a current appointment (only one appointment listed) equals £74,077, with a combined total current assets value of £112,033 and total current liabilities of £91,917"
I know I really should learn to understand all this - but my back ground is technical stuff - I'm an IP/Network fella.
Can anything be gleamed from these figures? I'm happy to communicate the full Company details in question via PM to anyone who might help. I'm not going to post them here though.
I'm booked to fly in and go visit them in early September and just want to get my homework done.
They are in the UK I'm in ROI.
Thanks for any help.
"The combined cash at bank value for all businesses where xxxxx holds a current appointment (only one appointment listed) equals £74,077, with a combined total current assets value of £112,033 and total current liabilities of £91,917"
I know I really should learn to understand all this - but my back ground is technical stuff - I'm an IP/Network fella.
Can anything be gleamed from these figures? I'm happy to communicate the full Company details in question via PM to anyone who might help. I'm not going to post them here though.
I'm booked to fly in and go visit them in early September and just want to get my homework done.
They are in the UK I'm in ROI.
Thanks for any help.
What are you trying to glean from this information, if they are worth dealing with?
It would appear as if they have a relatively small net worth, doesn't mean they're no good though. How long have they been trading? Can you seek trade references for them? What does their credit rating suggest?
It would appear as if they have a relatively small net worth, doesn't mean they're no good though. How long have they been trading? Can you seek trade references for them? What does their credit rating suggest?
LordHaveMurci said:
What are you trying to glean from this information, if they are worth dealing with?
Yeah.. anything at all - even if those figures mean anything.LordHaveMurci said:
It would appear as if they have a relatively small net worth, doesn't mean they're no good though. How long have they been trading? Can you seek trade references for them? What does their credit rating suggest?
Don't know about their credit rating, looks to me like they setup in 2013.| - | 2013 | 2014 |
|---|---|---|
| Cash | £24,403 | £74,077 |
| Net Worth | £8,859 | £20,415 |
| Total Current Liabilities | £73,484 | £91,917 |
| Total Current Assets | £81,945 | £112,033 |
I'm just after a 'vibe' feeling - are they going to be around in 5 years to support kit I'm looking to buy from them? Just anything anyone can tell me really...
What the figures tell you is that if they decided stop trading tomorrow, sold everything, got all their money in and paid off their debts, they'd be left with £21k.
Published figures can only tell you so much and tend to be a snap shot in time. They should not be ignored but you do need to look at the wider picture and weigh up your own acceptance of risk to determine the level of commitment you are willing to give to that company.
Look at cash-flow projections, customers (do they come and go or are they loyal) and check out the director(S). If the company directors have a list of companies they've been involved with some of which have failed, then this should prompt a red-flag....but again, this is not always a bad thing.
It really comes down to balancing what you know with what you feel.
Published figures can only tell you so much and tend to be a snap shot in time. They should not be ignored but you do need to look at the wider picture and weigh up your own acceptance of risk to determine the level of commitment you are willing to give to that company.
Look at cash-flow projections, customers (do they come and go or are they loyal) and check out the director(S). If the company directors have a list of companies they've been involved with some of which have failed, then this should prompt a red-flag....but again, this is not always a bad thing.
It really comes down to balancing what you know with what you feel.
Edited by StevieBee on Monday 24th August 17:33
Edited by StevieBee on Monday 24th August 17:33
jonby said:
It's only a few pounds to download last year's accounts - they will be far more meaningful in terms of telling you profit/loss/trends
It won't be the full picture, but must be worth doing
It's now free to download company information from Companies House, it works pretty well and there is no more of this sign up for an account stuff.It won't be the full picture, but must be worth doing
truck71 said:
Which direction would you be trading with them? Ask to speak to some of their current customers/ suppliers etc. If they're of any worth they'll only be too happy to suggest references.
We'll be purchasing from them, initially. To be honest I think we can offer them technical skills but initially we are mainly looking to gain some services from them - we need to get a better idea of where they are moving in order to move forward.
strattonkillick said:
It's now free to download company information from Companies House, it works pretty well and there is no more of this sign up for an account stuff.
I knew that was coming, didn't realise it was live yet - they are still taking my money on the main site for downloads ! thanks for that, will save me a few poundsTheExcession said:
Zoon said:
If it's the company I think it is (name relates to an iconic type of lamp) then they appear to be going in the right direction. Other than that get references from current customers and see what you think.
YHMThanks.
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