Company Number: 12832534

Analysis Date: 2025-07-19 12:24 UTC

1. Risk Rating: MEDIUM
   ANGELS HOTEL LIMITED shows some signs of liquidity strain and operational challenges, although there is no immediate solvency threat evident from the latest accounts. The company is active, compliant with filings, and has positive net assets, but the very low cash balance and significant reliance on related party debtors present moderate risk factors.

2. Key Concerns:

• Liquidity Risk: Cash holdings have declined drastically to only £65 as of March 2024, which is extremely low for operational needs and raises concerns about the company’s ability to meet short-term obligations without relying on debtor collections or related party support.
• Related Party Exposure: A large portion (£188,256) of current assets are debtors owed from related companies, which may not be readily realizable and could impact cash flow if these debts become impaired or delayed.
• Declining Net Assets and Operational Contraction: Net assets have reduced from £83,445 in 2021 to £54,895 in 2024, with a reduction in employee count from 75 to 69, and disposal of tangible fixed assets. This indicates some operational downsizing or financial pressure.

3. Positive Indicators:

• Compliance and Governance: The company is up to date with all statutory filings (accounts and confirmation statements), demonstrating good regulatory compliance and governance discipline.
• Positive Net Assets: Despite reductions, the company still reports positive net assets and shareholders’ funds, indicating solvency on a balance sheet basis.
• Stable Ownership and Management: Controlled fully by The Tall Ostrich Ltd with a single consistent director, which may support stable decision-making and oversight.

4. Due Diligence Notes:

• Investigate the nature and collectability of the related party debtor balances—confirmation of payment terms, creditworthiness of related entities, and any potential impairment risks.
• Review cash flow statements and management accounts to understand operational cash generation and timing of liabilities payment, given the very low cash balance.
• Assess the reasons behind tangible fixed asset disposals and downward trends in net assets and workforce to evaluate operational sustainability and strategic direction.
• Confirm whether there are any contingent liabilities or off-balance sheet commitments that might affect financial stability.
• Clarify any intercompany arrangements with The Tall Ostrich Ltd, particularly regarding financial support or guarantees.