ANTEP HINCKLEY LTD

Executive Summary

Antep Hinckley Ltd, a micro private limited company operating in the unlicensed restaurant and café sector, currently exhibits signs of financial distress, reflected in negative net assets and tight liquidity. Immediate focus on improving cash flow, restructuring liabilities, and possibly injecting fresh capital is essential to restore financial health and ensure sustainable operations.

ANTEP HINCKLEY LTD - Analysis Report

Company Number: 15095604

Analysis Date: 2025-07-29 14:33 UTC

Financial Health Assessment: ANTEP HINCKLEY LTD (as at 31 August 2024)

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1. Financial Health Score: D

Explanation:
The company shows significant financial stress with net liabilities of £35,523 despite being a micro-entity. Negative shareholders' funds and net liabilities indicate the company is "under the weather" financially, akin to a patient with critical symptoms that require close monitoring and intervention.

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2. Key Vital Signs (Core Financial Metrics):

Metric	Value (£)	Interpretation
Fixed Assets	5,261	Modest investment in long-term assets – stable base but limited scale.
Current Assets	14,176	Cash and short-term assets are relatively low but positive.
Current Liabilities	13,350	Short-term debts are nearly equal to current assets, indicating tight liquidity.
Net Current Assets (Working Capital)	826	Positive but very thin margin, implying limited buffer to cover short-term obligations.
Creditors Due After One Year	41,610	Large long-term liabilities, a significant burden for a micro business.
Net Assets (Equity)	-35,523	Negative equity reflects accumulated losses or capital deficiency – a key "symptom of distress."
Shareholders' Funds	-35,523	Mirrors net assets, indicating the owner’s investment and retained earnings are negative.

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3. Diagnosis: Financial Condition Analysis

• Liquidity: The company maintains just a thin positive working capital (£826), akin to a patient with a weak pulse—barely sustaining day-to-day operations. This suggests limited ability to absorb short-term shocks or unexpected expenses.
• Solvency: The presence of significant long-term creditors (£41,610) compared to total assets signals a solvency issue. Negative net assets indicate that liabilities exceed assets, putting the company in a state of financial deficit or "deep fatigue."
• Profitability & Reserves: The negative shareholders' funds imply accumulated losses or insufficient capital injections. Since the company was incorporated recently (2023), this may reflect start-up phase losses or initial funding shortfall.
• Size & Scale: As a micro-entity with only 6 employees, the scale is small but the financial structure shows strain. The micro-entity accounting regime means less detailed reporting, but the fundamental distress signs are clear.
• Director & Control: The sole director and 100% owner, Mr. Shahab Mirzah, holds full control, which can be an advantage for agility but also concentrates financial risk.

Overall, the financial "symptoms" indicate that the company is currently in a fragile state, with a risk of insolvency if conditions do not improve.

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4. Recommendations: Path to Recovery and Financial Wellness

• Improve Liquidity: Focus on increasing cash reserves and current assets relative to current liabilities. This could involve tighter credit control, accelerating receivables, or negotiating longer payment terms with suppliers.
• Restructure Debt: Engage with creditors holding long-term liabilities (£41,610) to explore restructuring options such as extended payment plans or refinancing to reduce immediate pressure.
• Capital Injection: Consider fresh equity investment or shareholder loans to improve net asset position and reduce negative equity. This acts like a "transfusion" to stabilize financial health.
• Cost Management: Review operating costs carefully, especially given the small scale, to reduce unnecessary expenses and improve profitability.
• Financial Monitoring: Implement robust monthly cash flow forecasting and financial reporting to detect early warning signs and manage financial "symptoms" proactively.
• Growth Strategy: Develop a clear plan to increase revenues sustainably, possibly through marketing or diversifying offerings, to build a buffer and improve solvency over time.

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Executive Summary