Company Number: 15113910

Analysis Date: 2025-07-20 13:50 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with negative net assets of £42,021 just over one year since incorporation. Current liabilities greatly exceed current assets, indicating liquidity challenges.

2. Key Concerns:

• Negative Net Assets: The company’s shareholders’ funds stand at -£42,022, indicating it is technically insolvent on a balance sheet basis.
• Severe Working Capital Deficit: Current liabilities of £33,996 far exceed current assets of £5,750, resulting in a negative net current asset position of -£28,246. This raises serious liquidity risk and potential difficulty meeting short-term obligations.
• High Long-term Debt Relative to Assets: Creditors due after one year amount to £14,842, which further burdens the financial position given minimal fixed assets (£1,067).

3. Positive Indicators:

• Compliance and Filing: No overdue accounts or confirmation statements; filings appear up to date, indicating regulatory compliance so far.
• Multiple Directors and Significant Control: Presence of several directors with diverse backgrounds (banker, publican, engineer) and a clear PSC register suggests some governance structure in place.
• Operating in a Defined Industry: The company’s SIC code (56302) identifies it as operating in public houses and bars, a sector with potential for steady cash flow if well managed.

4. Due Diligence Notes:

• Investigate the nature and terms of the creditors, especially the composition of the long-term borrowings and whether these are secured loans or overdrafts.
• Review the company's cash flow projections and business plan to understand how it intends to manage the current liquidity shortfall.
• Clarify reasons behind the substantial negative retained earnings (P&L reserve) after just over one year of trading—possible early losses or capital withdrawals.
• Confirm the operational status of the business (trading activity, revenue generation) since limited financial data is available.
• Assess any contingent liabilities or off-balance-sheet obligations not reflected in the accounts.