Company Number: 14157869

Analysis Date: 2025-07-29 19:10 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Aphrodite's Temptations Limited is a very young private limited company in the unlicensed restaurant and café sector. While the company is currently active and compliant with filing deadlines, the financials reveal weak liquidity and working capital deficits. The net current liabilities position improved from -£3,531 in 2023 to -£715 in 2024, indicating some progress, but current liabilities still exceed current assets. The company has minimal cash (£28) and relies heavily on trade debtors and stock. The presence of short-term bank loans and significant tax/social security liabilities suggests pressures on cash flow. Given these factors, credit approval should be conditional on close monitoring of cash flow management and timely settlement of short-term obligations. Additional collateral or personal guarantees may be advisable.

2. Financial Strength:
   The company’s balance sheet shows net assets of £6,484, supported mainly by tangible fixed assets (£7,199) and a small amount of shareholders’ funds (£6,484). The net asset position has improved slightly from £4,939 in 2023. However, the fixed assets are declining year on year (£8,470 in 2023 to £7,199 in 2024) indicating depreciation or disposals. The company’s current asset base is very limited and includes stock (£1,240) and debtors (£1,153) that may not be quickly realizable. Overall, the equity base is modest and the company operates with a working capital deficit, which constrains financial flexibility.

3. Cash Flow Assessment:
   Cash balances remain very low (£28 as of June 2024), and current liabilities amount to £3,136, including £3,103 in taxation and social security costs, which may indicate a build-up of unpaid payroll-related liabilities. The company’s minimal cash and negative net current assets highlight a potential liquidity risk. The increase in debtors and stock suggests some operational growth but also ties up cash. The company’s ability to generate positive operating cash flows is uncertain, and it appears dependent on external funding or owner injections to meet short-term obligations.

4. Monitoring Points:

• Liquidity ratios: Current ratio and quick ratio to track working capital improvements
• Cash flow from operations: To assess ability to self-fund working capital and debt servicing
• Timely payment of taxation and social security liabilities to avoid penalties or enforcement actions
• Debtor collection period and stock turnover to ensure efficient cash conversion cycles
• Fixed asset management to understand capital expenditure and asset utilization
• Any changes in ownership or director conduct records, as the company is small and founder-dependent