UK hello

[beechris]

Hello
Ive just joined, Could I ask for some advice please, I am considering buying a haulage company, ive just done a company credit check the following came up and im having trouble understanding it, ...............................

The latest Annual Accounts submitted to Companies House for the year up to 30/11/2012 reported 'cash at bank' of £5,170, 'liabilities' worth £62,543, 'net worth' of £-15,624 and 'assets' worth £28,169.

2012
Cash
£5,170

Net Worth
£-15,624

Total Current Liabilities
£62,543

Total Current Assets
£28,169

I think liabilities means debt? is the company running in profit? is it worth buying?
Chris

 

[Becky]

Hello and welcome to the forum!

You would need a lot more information before deciding whether a company is worth buying. There is only so much you can learn from the balance sheet, are their full accounts available? You are correct that liabilities represent debts owed by the company, but it is also important to consider when those debts fall due. The cash figure seems low, indicating they may have cash flow problems - but again, there could be a reason behind that.

 

[noor]

Hello and welcome to the forum!