Company Number: 13678601

Analysis Date: 2025-07-29 18:18 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Bear Grills @ Ltd is a small private limited company operating in the takeaway food sector. It is currently active with no overdue filings, which is positive for compliance and operational continuity. However, the company’s financial position shows net current liabilities and a very low net asset base (£197 at FY 2024 year-end), reflecting weak short-term liquidity and limited financial buffer. The company has significant hire purchase obligations (over £14k net book value of fixed assets under hire purchase and about £14.6k total hire purchase creditor balance) which strain cash flow. The director has committed to supporting the company going forward, which somewhat mitigates risk but introduces dependency on owner support. Credit approval can be considered with conditions — such as limits on credit exposure, regular financial monitoring, and possibly requiring additional collateral or personal guarantees.

2. Financial Strength:

• Net assets have eroded sharply from £2,440 in 2023 to only £197 in 2024, indicating declining retained earnings and financial health.
• Tangible fixed assets have increased substantially due to additions financed via hire purchase, increasing leverage and fixed obligations.
• Net current liabilities have worsened from -£3,108 to -£4,489, indicating working capital deficits.
• The company’s equity is minimal, and provisions for liabilities appear (£3,172), adding to financial stress.
• Overall, the balance sheet is fragile with high leverage and limited equity cushion.

3. Cash Flow Assessment:

• Cash at bank increased modestly from £3,337 to £3,711, but this is insufficient to cover current liabilities of £11,044.
• Debtors have decreased significantly, which might impact revenue inflows.
• The company relies heavily on hire purchase financing, increasing fixed repayment commitments.
• Negative net working capital suggests potential liquidity issues in meeting short-term obligations without external support.
• Director’s stated financial backing helps but cash flow remains tight.

4. Monitoring Points:

• Track net current assets and cash flow monthly to assess liquidity trends.
• Monitor hire purchase repayments and creditor aging to avoid defaults.
• Review director financial support arrangements and any changes in funding.
• Watch profitability and retained earnings in future accounts to evaluate recovery in net assets.
• Confirm timely filing and compliance to avoid regulatory penalties.