Company Number: 13614338

Analysis Date: 2025-07-20 19:16 UTC

1. Credit Opinion: DECLINE. Big Mak Nottingham Ltd exhibits a weak financial position with persistent negative net current assets and negative shareholders’ funds over the last three years. The company’s liabilities exceed its assets, indicating insolvency on a balance sheet basis. The lack of profitability data and overdraft or borrowing details limits insight into cash generation but the negative working capital suggests liquidity stress. Without significant improvement in capital structure or cash flow, the risk of default on credit facilities is high.

2. Financial Strength: The balance sheet shows total assets less current liabilities at -£7,921 in 2023, an improvement from -£23,219 in 2022, but still negative. Shareholders’ funds remain negative at -£8,021, reflecting accumulated retained losses. The company’s tangible fixed assets have decreased slightly but remain modest at £35,852. Current liabilities of £130,259 significantly exceed current assets of £86,486, resulting in a net current liability of £43,773. This persistent working capital deficit undermines financial stability.

3. Cash Flow Assessment: Cash at bank decreased sharply from £29,948 in 2022 to £10,841 in 2023, indicating cash depletion. Debtors increased to £27,520 from zero previously, which may reflect credit sales but also potentially delayed cash inflows. Inventories have grown from £25,005 to £48,125, possibly tying up further cash in stock. The company’s continuous negative net current assets and shrinking cash balances imply tight liquidity and potential difficulties in meeting short-term commitments without external support.

4. Monitoring Points:

• Liquidity trends: monitor cash balances and debtor collection closely.
• Working capital management: review inventory turnover and creditor terms.
• Profitability: assess future filings for return to profit and positive retained earnings.
• Capital infusion: watch for equity injections or debt restructuring to restore solvency.
• Director actions: continued oversight of financial controls and risk mitigation.