BAR LOVERS LIMITED

Risk Rating: HIGH Justification: The company is insolvent, has officially ceased trading, and is subject to a proposal to be struck off the Companies House register. The financial position shows persistent net liabilities, and the entity no longer generates revenue, presenting a near-total risk to any creditor or investor.

Key Concerns: - Imminent Dissolution: The company status is "Active - Proposal to Strike off." This indicates that legal action is underway to dissolve the entity. Once struck off, the company ceases to exist, and any assets may vest in the Crown, making debt recovery or investment realization virtually impossible. - Insolvency and Deteriorating Net Assets: The company has been insolvent since 2022, with net liabilities growing from £-975 to £-1,814 in the latest reporting period (March 2024). Total liabilities (£6,397) significantly exceed total assets (£4,583), demonstrating an inability to meet obligations from existing balance sheet resources. - Cessation of Trade: The latest filed accounts explicitly tag the entity as "NoLongerTradingButTradedInPast." A business that has ceased operations has no operational cash flow to service its debts or reverse its deteriorating financial position.

Positive Indicators: - Low Absolute Debt Values: While insolvent on paper, the absolute scale of the liabilities is very small (£6,397). This suggests the insolvency is at a micro-level rather than indicative of a large-scale corporate collapse, which may limit the broader fallout. - Minimal Historical Volatility: Between 2017 and 2021, the company maintained a consistent, albeit small, positive net asset position (£1,621). The recent insolvency appears to be a specific recent decline rather than a long-term structural failure. - Filing Compliance: Despite being a micro-entity and ceasing trade, the director has continued to file accounts (most recently approved in January 2025), showing some ongoing administrative engagement.

Due Diligence Notes: - Strike-Off Origin: Investigate whether the strike-off proposal was initiated voluntarily by the director (e.g., form DS01) or compulsorily by a creditor or Companies House for non-compliance. This context is vital for understanding if the dissolution is contested. - Creditor Composition: The accounts do not break down the £6,397 in current liabilities. It is necessary to determine if these are trade creditors, HMRC liabilities, or director loans. If the director is the primary creditor, the insolvency is less of an external risk. - Asset Realization: The £4,583 in current assets needs clarification. As a ceased pub/restaurant business, it is important to verify if these are cash reserves, obsolete inventory, or written-down fixtures, and how they will be handled upon dissolution. - Accounts Overdue Status: The data indicates accounts are "Overdue: YES" despite recent filings. Verify the current standing at Companies House to ensure no administrative penalties are compounding the liabilities.