BOTANICO WOOLTON LIMITED

Executive Summary

Botanico Woolton Limited, a newly incorporated licensed restaurant operator, currently faces significant liquidity challenges with net current liabilities far exceeding current assets. While the company has made timely statutory filings and invested in tangible fixed assets, its limited trading history and high short-term creditor balances suggest elevated risk. Further due diligence on cash flow management and creditor terms is recommended before investment consideration.

BOTANICO WOOLTON LIMITED - Analysis Report

Company Number: 14984467

Analysis Date: 2025-07-20 12:52 UTC

1. Risk Rating: HIGH
   Botanico Woolton Limited exhibits significant liquidity concerns with net current liabilities of approximately £146k despite holding current assets of £170k. The current liabilities exceed current assets by a wide margin, indicating potential difficulty in meeting short-term obligations. Additionally, the company is less than one year old, limiting historical performance data, and has substantial fixed assets relative to equity, which may not easily convert to cash.

2. Key Concerns:

• Negative Working Capital: The company has net current liabilities of £145,910, suggesting cash flow pressure to cover immediate debts.
• High Trade and Other Creditors: Current liabilities total £315,534, with significant amounts due for taxation and social security (£110,382) which could imply tax liabilities or payroll obligations that must be monitored carefully.
• Limited Operational History: Incorporated in July 2023, the company has only one accounting period, making it difficult to assess operational sustainability or profitability trends.

3. Positive Indicators:

• Substantial Tangible Fixed Assets: The company holds £252,422 in net tangible fixed assets, indicating investment in physical resources that may support ongoing operations.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, reflecting good regulatory compliance and governance practices.
• Experienced Management: Directors appear to be professionally appointed and reside at the company address, suggesting hands-on management and control.

4. Due Diligence Notes:

• Investigate the nature and terms of the company's creditors, especially the amounts falling due after one year (£56,154), to understand repayment obligations and potential refinancing risks.
• Review cash flow forecasts or management accounts to assess how the company intends to resolve its negative working capital position.
• Confirm the status and recoverability of debtors (£150,179), as this is a major component of current assets and critical for liquidity.
• Examine the reasons for the name change shortly after incorporation and any operational changes associated with it.
• Evaluate the company's business plan and market positioning in the licensed restaurant sector (SIC 56101) for sustainability given the competitive environment.