Company Number: 13160871

Analysis Date: 2025-07-20 12:04 UTC

1. Risk Rating: HIGH

Justification: The company’s most recent financial statements show negative net current assets and total net liabilities, indicating potential solvency issues. Despite being active and filing on time, the balance sheet reveals a deteriorating financial position over the past two years, which raises significant concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: As of 31 July 2024, current liabilities (£91,231) exceed current assets (£57,776) by £33,455, indicating liquidity stress.
• Declining Net Assets: Net assets have decreased from £75,370 in 2023 to a negative £38,007 in 2024, a substantial deterioration that suggests accumulated losses or write-downs.
• Limited Share Capital & Single Director Control: The share capital is nominal (£1.00), with a single director and 100% control by Xxxxxx Xxxxxxxxname shown to subscribers, potentially concentrating risk and governance issues.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with its statutory accounts and confirmation statement filings, indicating regulatory compliance.
• Stable Employee Base: The company employs 16 people as of the latest accounts, a slight increase from 14, suggesting operational continuity.
• Industry Stability: Operating in the public houses and bars sector (SIC 56302), which can generate steady cash flows if managed prudently.

4. Due Diligence Notes:

• Examine the Causes of Negative Net Assets: Investigate the factors behind the sharp decline in net assets and negative working capital—whether due to increased liabilities, write-offs, or operational losses.
• Review Cash Flow and Profitability: Obtain management accounts or cash flow statements to assess if cash generation is sufficient to meet liabilities.
• Assess Director’s Financial Support: Given the small share capital and director’s full control, clarify whether there is any financial backing or guarantees from the principal or third parties.
• Evaluate Debt Structure: Detailed review of creditor composition and payment terms to understand the risk of insolvency or creditor pressure.
• Operational Sustainability: Confirm if the business model remains viable in the current market given the financial strain.