Company Number: 13970918

Analysis Date: 2025-07-29 19:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ALBADAR ORIGINAL LIMITED shows a very recent incorporation (2022) with micro-entity accounts, indicating a small business scale. The company operates in the unlicensed restaurants and cafes sector, which can be volatile and sensitive to economic shifts. Financially, the company’s net assets are negative (£-53,123) due to recognition of creditors exceeding current assets, indicating net liabilities rather than net assets, which raises concerns on solvency. However, the balance sheet figures provided appear inconsistent or possibly misclassified (see below). The company is active with no overdue filings and has a single director with substantial control, which simplifies governance but concentrates risk. Because the financial data shows potential liquidity and leverage issues, credit approval should be conditional on receipt of further clarification on liabilities and cash flow projections.

2. Financial Strength:

• Fixed assets are modest (£35,390) relative to liabilities.
• Current assets are £16,366, which is low to cover current liabilities stated as £104,879. However, note the accounts state net current assets as £16,366, which conflicts with the stated current liabilities figure, suggesting possible data input or reporting errors.
• Total net assets are reported as £53,123, but the notes also show "Creditors: amounts falling due after more than one year" of £104,879, which exceeds total assets less current liabilities (£51,756). This would imply negative equity, inconsistent with reported net assets and shareholders’ funds.
• The company has no long-term debt or overdrafts explicitly disclosed, but the large creditors figure after one year raises concerns about long-term obligations.
• Shareholders’ funds equal net assets, indicating no external equity injections besides director ownership.

3. Cash Flow Assessment:

• Current assets are low relative to current liabilities, which may signal tight liquidity and potential working capital constraints.
• Average employee count is four, implying limited payroll obligations.
• No cash flow statement is provided, but the sector typically requires consistent cash inflows to meet short-term obligations.
• The negative or confusing net current asset figures warrant further cash flow details to confirm ability to meet short-term debts.

4. Monitoring Points:

• Clarify and reconcile creditor classifications and net asset figures to assess true solvency.
• Monitor liquidity ratios closely (current ratio, quick ratio) to ensure working capital is adequate.
• Track cash flow statements and bank balances regularly for early warning of shortfalls.
• Review the director’s financial support or guarantees, given sole control.
• Watch sector-specific risks such as changes in consumer spending or regulatory impacts on foodservice businesses.