Company Number: 14493949

Analysis Date: 2025-07-20 17:00 UTC

1. Credit Opinion: DECLINE
   Ashbourne and Ashbourne Limited is a very recently incorporated entity (Nov 2022) operating in the public houses and bars sector (SIC 56302), which is typically high risk due to economic sensitivity and intense competition. The company’s financials to 31 October 2023 show extremely limited scale with net assets of only £100 and a negligible positive working capital of £100. Current liabilities (£4,000) are almost equal to current assets (£4,100), indicating a very tight liquidity position. The business has no employees other than the director and minimal operational history. There is no profit and loss data filed, so no evidence of trading performance or cash generation. Given these facts, the company lacks financial strength and operating history, making its ability to service any significant credit facility very doubtful. The director’s advances of £196 to the company provide minimal buffer but do not materially improve creditworthiness. Overall, the company is not a suitable candidate for credit approval at this stage.

2. Financial Strength:
   The balance sheet shows minimal fixed or current assets, with total net assets of £100, reflecting only the nominal share capital. Current liabilities stand at £4,000, representing other loans, likely short-term and payable within one year. The company’s net current assets are positive but marginal at £100, indicating almost no working capital cushion. Absence of retained earnings or reserves means the company has neither accumulated profits nor financial reserves to draw on. The capital structure is extremely thin, and the company is highly leveraged relative to its asset base, though absolute amounts are small.

3. Cash Flow Assessment:
   Cash held at year-end was £3,904, close to the total current liabilities, suggesting very limited liquidity headroom. Debtors are minimal (£196) and relate to a director loan, which is unsecured and repayable on demand, but unlikely to provide reliable liquidity support. The absence of employees and operating history implies no meaningful cash flow from trading yet. The company’s ability to meet short-term obligations depends heavily on continued director support or fresh capital injection. There is no evidence of operating cash flow generation or profitability, which poses significant risk to repayment capability.

4. Monitoring Points:

• Filing of the next set of accounts with profit and loss data to assess trading performance and cash flow trends.
• Changes in current liabilities and borrowings, especially whether director loans or external debt increase.
• Liquidity position and cash balances relative to liabilities on a quarterly basis.
• Any sign of operational scaling or new customer acquisition to improve revenues.
• Director conduct and any additional capital injections or guarantees provided.