92 DEGREES SPINNINGFIELDS LIMITED

Executive Summary

92 Degrees Spinningfields Limited shows significant financial distress with large negative net assets and working capital deficits, indicating high solvency and liquidity risks. While compliance with filings is maintained and some asset investment is evident, operational contraction and growing losses raise serious concerns about sustainability. Further investigation into the company’s cash flow, liabilities, and business performance is strongly recommended before investment consideration.

92 DEGREES SPINNINGFIELDS LIMITED - Analysis Report

Company Number: 13630502

Analysis Date: 2025-07-20 15:39 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, evidenced by substantial negative net assets and large current liabilities far exceeding current assets. This financial position presents a high risk of the company being unable to meet its short-term obligations.

2. Key Concerns:

• Severe Negative Net Assets: The net assets have deteriorated from approximately -£13.9k in 2022 to -£109.9k in 2023, indicating increasing accumulated losses and declining financial health.
• Negative Working Capital: Current liabilities (£162,174) greatly exceed current assets (£35,004) as of 2023 year-end, resulting in a negative net current asset position of -£127,170, which signals liquidity stress.
• Declining Employee Count and Operational Scale: The average number of employees fell from 5 in 2022 to 3 in 2023, which may indicate operational contraction or cost-cutting due to financial pressures.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement filings are up to date, suggesting compliance with statutory requirements and good governance in this regard.
• Active Status with Established Directors: The company remains active with directors appointed recently, including a new director as of September 2024, which may indicate ongoing management engagement.
• Tangible Fixed Assets Growth: The company increased tangible fixed assets net book value from £9,135 in 2022 to £21,269 in 2023, demonstrating some investment in operational capacity.

4. Due Diligence Notes:

• Investigate the nature and timing of the large current liabilities to assess if these are short-term trade payables, loans, or other financial obligations and the company's plans for repayment or restructuring.
• Review management accounts, cash flow forecasts, and any external financing arrangements to understand liquidity management and going concern status.
• Explore the company’s revenue trends and profitability data, currently unavailable in filed accounts, to assess operational sustainability and identify causes of losses.
• Assess the impact of the COVID-19 pandemic or other external factors on trading performance, given the industry (unlicensed restaurants and cafes) is sensitive to such disruptions.
• Confirm the background and track record of directors, especially the majority shareholder, to evaluate management capability and integrity.