Company Number: 14064821

Analysis Date: 2025-07-29 13:32 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Be Alarmed Ltd is a micro-entity active in the public houses and bars sector with a short trading history since incorporation in April 2022. The company has demonstrated a significant turnaround from negative net assets and current liabilities in its first two years to a positive net asset position (£1,415) and net current asset surplus (£991) as of April 2024. This improvement signals initial progress towards financial stability. However, given the limited trading history, small scale, and modest absolute financial figures, credit extension should be limited and conditional on continued positive cash flow and financial discipline. The director’s full ownership and control indicate clear management accountability but no diversification of leadership risk.

2. Financial Strength:
   The balance sheet shows a very small fixed asset base (£424) and current assets of £8,088 primarily comprising cash or receivables. Current liabilities have increased to £7,097 but are comfortably covered by current assets, resulting in positive working capital. Total net assets improved from negative £447 in 2023 to positive £1,415 in 2024, reflecting retained earnings or capital injection. The company remains very small and financially fragile, with minimal equity and no significant asset buffer. Its micro-entity classification and exemption from audit limit the depth of financial scrutiny, so figures should be viewed cautiously.

3. Cash Flow Assessment:
   Net current assets of £991 indicate positive short-term liquidity to meet immediate obligations. However, the absolute cash and working capital buffers are slim, and the increase in current liabilities from £447 to £7,097 suggests rising short-term obligations that need monitoring. The company employs only 2 staff, implying limited fixed overheads, which is beneficial for cash conservation. The absence of detailed cash flow statements restricts full liquidity analysis, but available data suggests the business is currently able to meet short-term liabilities with a modest margin.

4. Monitoring Points:

• Monitor quarterly cash flow to ensure ongoing ability to service short-term liabilities, especially with rising current liabilities.
• Track net asset and equity trends to confirm continued improvement and avoid regression to negative net worth.
• Review director’s financial management and any related party transactions, given sole control and ownership.
• Observe sector-specific risks in the hospitality industry, particularly sensitivity to economic downturns and regulatory impacts (e.g., licensing, operating restrictions).
• Ensure timely filing of statutory accounts and confirmation statements to avoid compliance risks.