Company Number: 13144925

Analysis Date: 2025-07-20 13:51 UTC

1. Credit Opinion: APPROVE
   Beach Cafe Services Trading Limited demonstrates solid financial stability with improving net current assets and a strong net asset base. The company’s ability to maintain positive working capital and growing shareholders’ funds over recent years indicates adequate capacity to meet short-term obligations and service debt. Its status as an active private limited company in a stable industry (licensed restaurants) with experienced directors in related fields supports creditworthiness. There are no adverse filings or director disqualifications noted.

2. Financial Strength:
   The balance sheet shows a stable fixed asset base around £380k and a notable increase in current assets from £139k to £197k year-on-year, reflecting improved liquidity. Current liabilities have increased moderately but remain comfortably covered by current assets, resulting in net current assets of £37,591 as of January 2024, up from £10,738 the prior year. Shareholders' funds have grown steadily to £376,565, demonstrating retained earnings or capital injections and a healthy equity buffer. The company carries minimal long-term liabilities (£617), indicating low gearing and financial risk.

3. Cash Flow Assessment:
   The current ratio (current assets/current liabilities) is approximately 1.20, showing adequate short-term liquidity. The net working capital position has improved, suggesting better cash flow management and operational efficiency. The rise in average employees from 53 to 61 indicates business growth but also potential increased payroll obligations, which management appears to be handling with sufficient liquidity. No overdue accounts or returns filings reduce risk of regulatory penalties impacting cash flow.

4. Monitoring Points:

• Track operating profitability and cash flow generation as employee count and current liabilities grow.
• Monitor accruals and deferred income, which have increased significantly to £42,980, to ensure no liquidity strains arise from timing mismatches.
• Watch for any changes in directors or control structure that might affect governance and risk profile.
• Ensure continued timely filing of accounts and confirmation statements to avoid compliance risk.