APRON COFFEE & SNAXX SHACK LIMITED

Executive Summary

Apron Coffee & Snaxx Shack Limited’s financials reveal a declining net asset position and negative working capital, raising concerns about its ability to service debts and sustain operations without external support. Given its micro-entity status and limited financial resilience, the credit risk is elevated. Ongoing monitoring of liquidity and equity improvements is essential before considering credit facility approval.

APRON COFFEE & SNAXX SHACK LIMITED - Analysis Report

Company Number: 14193538

Analysis Date: 2025-07-29 14:13 UTC

1. Credit Opinion: DECLINE
   Apron Coffee & Snaxx Shack Limited demonstrates a weak financial position with net liabilities of £3,612 as of June 2024, a decline from net assets of £12,669 in 2022. The company exhibits negative net current assets (-£5,147) and current liabilities exceeding current assets, indicating potential liquidity issues. This raises concerns about its ability to meet short-term obligations and service additional debt. The company is a micro-entity with minimal fixed assets and a small workforce, suggesting limited operational scale and financial resilience. Given these factors, the risk of default is elevated without substantial improvement in financial health or capital injection.

2. Financial Strength:
   The balance sheet reveals deteriorating financial strength over the last two years. Fixed assets decreased from £2,981 to £1,535, while current liabilities remain significant at £12,564 against current assets of only £7,417. The negative working capital position (current assets less current liabilities) worsened compared to the previous reported period, signaling strained liquidity management. Shareholders’ funds have moved from positive £12,669 to a negative position, reflecting accumulated losses or withdrawals that have eroded equity. The company’s micro category status limits transparency and scale, further restricting financial flexibility.

3. Cash Flow Assessment:
   The company’s net current liabilities position implies cash flow constraints, with current liabilities exceeding current assets by £5,147. This suggests the company may struggle to meet short-term payables without additional financing or improved cash conversion cycles. The absence of cash flow statement details restricts full assessment, but the micro-entity status and small employee base (2 employees) indicate limited operational cash generation. Monitoring debtor collection and creditor payment terms will be critical to avoid liquidity crises.

4. Monitoring Points:

• Net current assets and liquidity trends in subsequent filings
• Changes in shareholder equity or capital injections to improve solvency
• Revenue growth and profitability indicators to assess operational sustainability
• Director or shareholder actions indicating financial restructuring or support
• Compliance with filing deadlines to ensure regulatory standing