ALVASTON TAKEAWAY LTD

Executive Summary

Alvaston Takeaway Ltd is a newly formed micro-entity with modest net assets and a small positive working capital position. While the company shows no immediate financial distress and benefits from concentrated ownership, its limited trading history and tight liquidity warrant conditional credit approval with close monitoring of cash flow and working capital trends.

ALVASTON TAKEAWAY LTD - Analysis Report

Company Number: 15075630

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

1. Credit Opinion: CONDITIONAL APPROVAL
   Alvaston Takeaway Ltd is a newly incorporated micro-entity operating in the takeaway food sector. Its latest accounts show modest net assets of £10,348 and a small positive working capital position of £1,651, which is typical for a startup in this industry. The company is currently active with no overdue filings and no signs of financial distress. However, the current liabilities slightly exceed current assets when excluding prepayments, indicating limited short-term liquidity buffers. Credit approval is conditional on maintaining stable cash flow and monitoring for growth in earnings and working capital given the early stage of operations and limited financial history.

2. Financial Strength:
   The balance sheet is lean, with fixed assets of £9,450 and current assets of £23,937 including prepayments of £5,244. Current liabilities total £27,530, resulting in net current assets of £1,651, a positive but tight working capital position. Net assets and shareholders’ funds stand at £10,348, reflecting initial equity capital invested. The absence of long-term liabilities or debt is positive, but the small asset base and tight liquidity highlight a fragile financial position typical for a startup. The company has three employees including the director, consistent with its micro status.

3. Cash Flow Assessment:
   Liquidity appears constrained but manageable at present, with current assets covering current liabilities by a small margin. The presence of prepayments and accrued income improves the short-term asset base, but the company must carefully manage cash inflows and outflows to avoid liquidity stress. Given the limited trading history (first financial period), cash flow forecasting and monitoring will be essential to ensure timely settlement of liabilities and operational expenses. The director’s 75-100% ownership and control indicate concentrated management responsibility which can facilitate agile decision-making.

4. Monitoring Points:

• Track working capital trends and ensure net current assets remain positive or improve.
• Monitor cash flow statements when available for consistency in operational cash generation.
• Watch for any increases in short-term liabilities or delays in payment to suppliers.
• Review subsequent trading performance and profitability once further accounts are filed.
• Assess management’s ability to scale operations while maintaining financial discipline.