BLACKPOOL PUBS LTD

Executive Summary

BLACKPOOL PUBS LTD is experiencing financial strain characterized by negative net assets and tight liquidity, suggesting a fragile financial state despite stable fixed assets. Immediate measures to improve cash flow and restructure liabilities are essential to restore financial health and ensure sustainable operations. Maintaining governance discipline and exploring capital injection options will be critical for recovery.

BLACKPOOL PUBS LTD - Analysis Report

Company Number: 13804556

Analysis Date: 2025-07-29 20:26 UTC

Financial Health Assessment: BLACKPOOL PUBS LTD (As at 31 December 2023)

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1. Financial Health Score: D

Explanation:
The company shows a persistent negative net asset position (net liabilities of £3,973) over the past three years with no improvement, indicating financial distress. While it is maintaining its fixed assets consistently, current liabilities nearly match these assets, leaving no net working capital buffer. This reflects symptoms of financial strain, akin to a patient with stable vital signs but underlying chronic illness.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Fixed Assets	200,000	Stable investment in long-term assets, likely property or equipment for pub operations.
Current Liabilities	203,973	High short-term obligations exceeding liquid assets, a red flag for liquidity issues.
Net Assets (Equity)	-3,973	Negative equity indicates liabilities exceed assets, a symptom of financial distress.
Shareholders’ Funds	-3,973	Mirrors net assets, showing shareholders’ investment is effectively eroded.
Average Number of Employees	1	Very small workforce consistent with micro-entity status, minimal operating scale.
Filing Status	Up to date	Positive sign, no penalty or compliance issues, showing governance is maintained.

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3. Diagnosis

• Liquidity Stress: The company’s current liabilities slightly exceed fixed assets, with no net current assets disclosed, suggesting a lack of healthy cash flow or working capital. This is like a patient whose blood pressure is stable but has poor circulation — operations may be strained to meet short-term obligations.

• Negative Net Worth: Repeated negative net assets over three years is a chronic symptom indicating that accumulated losses or liabilities have not been offset by equity or retained earnings. This is a critical warning sign, akin to a chronic illness requiring intervention.

• Asset Concentration: Fixed assets remain constant at £200,000, which may represent property or essential equipment. However, without sufficient liquid assets or working capital, these assets may not be generating enough revenue or may be illiquid in a crisis.

• Scale and Growth: The company operates on a micro scale with only one employee on average, which limits operational capacity and potential revenue growth. The change in directors recently might indicate a strategic shift or attempt to improve management.

• Control and Governance: Ownership and control are concentrated between two individuals holding 75-100% shares, which can be positive for decision-making but may limit external oversight.

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4. Recommendations

• Improve Liquidity: Prioritize generating or securing short-term cash to cover liabilities. This could involve negotiating extended payment terms with creditors or obtaining short-term financing to ease cash flow pressure.

• Reassess Asset Utilization: Evaluate whether the fixed assets are generating sufficient returns. If not, consider options like leasing or selling underutilized assets to inject liquidity.

• Restructure Debt: Explore refinancing or restructuring existing liabilities, especially current liabilities that are putting pressure on working capital.

• Increase Capital Injection: Consider new equity infusion from current owners or external investors to restore positive net assets and strengthen the balance sheet.

• Operational Review: With limited staffing and micro-scale operations, assess business model viability and opportunities for scaling or diversifying revenue streams.

• Monitor Financial Reporting: Continue timely filing and consider preparing more detailed financial forecasts to anticipate future risks and opportunities.

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