Company Number: 13911194

Analysis Date: 2025-07-29 20:23 UTC

1. Credit Opinion: DECLINE
   Bold Uni Trading Limited currently exhibits significant financial distress with net liabilities of £42,887 as at 31 March 2024, a deterioration from net assets of £215 in the prior year. The company’s current liabilities have nearly doubled to £100,981 against current assets of only £27,116, resulting in a substantial working capital deficit of £73,865. This negative liquidity position raises serious concerns about the company’s ability to meet short-term obligations and service any new or existing debt facilities. Given the company is less than two years old and operates in the competitive unlicensed restaurant and café sector, the financial weakness and cash flow shortfall suggest high risk of default or insolvency without significant external support or a turnaround in trading performance.

2. Financial Strength:
   The balance sheet shows a rapidly increasing creditor position, notably a £42,259 tax and social security liability, which has increased sharply from £5,795 the previous year, indicating possible cash flow strain or tax arrears. Fixed assets net of depreciation stand at £30,978, but total assets less current liabilities remain negative at £42,887. Shareholders’ funds are deeply negative (£42,987), reflecting accumulated losses and erosion of capital. The company’s reliance on group undertakings for £55,657 of its creditors suggests intra-group funding but also limits external creditor confidence. Overall, the financial position is weak, with insufficient equity and negative net assets that undermine creditworthiness.

3. Cash Flow Assessment:
   Cash at bank is modest at £10,237 with debtors of £14,106, but these are heavily outweighed by current liabilities of over £100k. The working capital deficit of £73,865 indicates a severe liquidity crunch. The increase in tax liabilities may point to delayed payments or tax accruals causing cash flow pressures. The company has expanded its workforce from 11 to 16 employees year-on-year, which may increase fixed costs without clear evidence of revenue growth. The absence of an income statement limits the ability to assess profitability or operational cash flow, but the balance sheet and creditor levels strongly imply negative cash flow and potential solvency risk in the near term.

4. Monitoring Points:

• Track monthly cash flow and liquidity metrics closely, especially ability to meet tax and social security liabilities.
• Monitor creditor aging and any overdue payments to suppliers or HMRC.
• Review any intra-group financial support arrangements and their sustainability.
• Assess changes in turnover and gross margin once income statements are available to verify operational recovery or deterioration.
• Keep watch on any director or shareholder capital injections or restructuring plans that could improve solvency.