ALCOMBE TANDOORI 4U LTD

Executive Summary

Alcombe Tandoori 4U Ltd is a newly formed micro-entity in the licensed restaurant sector with minimal tangible net assets and a slight working capital deficit. While the company shows compliance with filing requirements and has concentrated ownership, its early-stage financials indicate limited resilience and cash flow capacity. Credit extension should be cautious and contingent on close financial monitoring and operational performance reviews.

ALCOMBE TANDOORI 4U LTD - Analysis Report

Company Number: 14454188

Analysis Date: 2025-07-20 18:37 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Alcombe Tandoori 4U Ltd is a recently incorporated micro private limited company operating as a licensed restaurant. The company shows modest net assets of £4,551 and a small net current liability position (£269), indicating limited working capital. Given the company’s early stage and small scale, it does not yet demonstrate strong financial resilience or significant cash flow buffers. However, the absence of overdue filings and a single experienced director owning 100% of voting rights provides some governance assurance. Credit approval should be conditional on monitoring trading performance and cash flow closely, especially given the hospitality sector’s volatility.

2. Financial Strength:
   The balance sheet indicates total fixed assets of £4,820—likely representing basic kitchen or restaurant equipment—and current assets of £6,456 against current liabilities of £6,725. This results in a slight working capital deficit (net current liabilities of £269). The net assets of £4,551 primarily reflect shareholder funds, showing no external debt at this stage. The company’s financial structure is typical for a micro entity in its first year but lacks significant capital reserves to absorb shocks or fund growth.

3. Cash Flow Assessment:
   Working capital is slightly negative, suggesting tight liquidity. There is no detailed profit and loss information, but the lack of audit and limited disclosure under the micro-entity regime limits insight into profitability and cash generation. The small scale of operations and current liabilities close to current assets indicate limited short-term financial flexibility. Cash flow management and timely debtor collections will be critical to meet operational costs and service any credit obligations.

4. Monitoring Points:

• Monitor trading performance and profitability once P&L data becomes available to assess sustainability.
• Watch working capital trends, especially current asset and liability balances, to ensure liquidity remains adequate.
• Track timely submission of future accounts and confirmation statements to avoid regulatory risks.
• Keep an eye on sector-specific risks such as changes in consumer demand or cost pressures in the hospitality industry.
• Review any increase in borrowing or changes in ownership/control that might affect credit risk.