BO & CO HOSPITALITY LIMITED

Executive Summary

BO & CO HOSPITALITY LIMITED is a newly established small business with a modest but positive financial position. The company shows a net current asset surplus and positive equity, but limited cash and sizable tax liabilities suggest tight liquidity. Conditional credit approval is recommended, with emphasis on monitoring cash flow, debtor collections, and tax payments to ensure ongoing financial stability.

BO & CO HOSPITALITY LIMITED - Analysis Report

Company Number: 15019545

Analysis Date: 2025-07-29 17:37 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   BO & CO HOSPITALITY LIMITED is a newly incorporated private limited company with a small capital base (£200 share capital) and limited financial history as it was incorporated in July 2023. The latest accounts (year ending July 2024) show net current assets of £6,952 and positive shareholders’ funds of the same amount, indicating a modest but positive working capital position. The company is not in liquidation or administration, and filings are up to date. However, the small scale of operations, limited cash on hand (£266), and reliance on debtors (£19,449) to fund short-term liabilities (£12,763) suggest that liquidity could be tight. Corporation tax payable of £12,054 is a significant current liability that will need to be managed carefully. Credit approval should be conditional on continued monitoring of cash flow and timely payment of tax obligations. Additional financial information, such as profit and loss or cash flow statements, would be beneficial to assess profitability and cash generation.

2. Financial Strength:
   The company’s financial position is currently modest but stable. Total assets less current liabilities equal net assets of £6,952, primarily made up of trade and other debtors (£19,449) offset by current liabilities (£12,763). The low cash balance (£266) is a concern for immediate liquidity needs. Shareholders’ funds are positive but limited. The company falls within the small company exemption thresholds and is not subject to audit, indicating a relatively small scale. There are no fixed assets reported, which implies limited capital investment. Overall, the balance sheet reflects a start-up or early stage business with limited financial strength but no immediate signs of distress.

3. Cash Flow Assessment:
   Current assets are mainly debtors, representing amounts owed to the company, with very low cash reserves. The company’s ability to meet short-term obligations relies heavily on the timely collection of receivables. Current liabilities include a sizable corporation tax liability (£12,054), which represents a near-term cash outflow risk. The net current asset position (£6,952) shows some buffer but is not substantial. Without detailed cash flow statements, it is difficult to fully assess operational cash generation, but the low cash on hand and reliance on debtor collection highlight potential liquidity constraints. Working capital management will be critical.

4. Monitoring Points:

• Liquidity: Watch cash balances and timing of debtor collections to ensure sufficient liquidity to cover current liabilities including tax payments.
• Profitability: Monitor profit and loss trends once available to assess operational performance and ability to generate sustainable earnings.
• Tax Obligations: Ensure corporation tax liabilities are paid promptly to avoid penalties and cash flow strain.
• Credit Risk: Assess quality of debtor book and exposure to bad debts.
• Growth Trajectory: Track revenue and asset growth as the company matures, looking for improvements in financial strength and cash flow generation.