Company Number: 12516193

Analysis Date: 2025-07-20 17:36 UTC

1. Credit Opinion: APPROVE Adrian & Hannah Limited demonstrates strong liquidity and a solid equity base with steadily increasing net assets over the past four years. The company is active, with no overdue filings or indications of distress. Its industry (food services and unlicensed restaurants/cafes) can be sensitive to economic fluctuations; however, the company’s growing working capital and cash reserves suggest it can manage operational cash flow demands and debt service comfortably. Directors have maintained compliance and transparent reporting, which supports confidence in financial stewardship.

2. Financial Strength: The company’s net assets have grown from £5,175 in 2020 to £185,364 in 2024, indicating healthy retained earnings and capital accumulation. Fixed assets increased modestly to £12,469, reflecting some investment in tangible resources without overextension. Current liabilities rose as the business scaled, but net current assets remain robust at £172,895, reflecting strong short-term financial health. Share capital is minimal (£100 nominal), so the company’s strength mainly derives from accumulated profits.

3. Cash Flow Assessment: The company holds substantial cash balances (£369,191 at year-end 2024), covering current liabilities almost twofold, which implies excellent liquidity and ability to meet short-term obligations. Working capital is consistently positive and growing, which is a good indicator of operational efficiency and sound cash management. Trade creditors and other creditors have increased, but the cash position provides comfort for timely payments.

4. Monitoring Points:

• Monitor the increase in other creditors (£163,809 in 2024 vs. £71,615 in 2023) to ensure these liabilities do not indicate growing payment delays or supplier disputes.
• Maintain oversight of cash flow trends in relation to seasonal fluctuations typical in the food service industry.
• Watch for any changes in directors or significant control that could affect governance.
• Track profitability and turnover trends (not provided here) to confirm ongoing growth and debt servicing capacity.