BOUNDS PUBS LTD

Executive Summary

BOUNDS PUBS LTD appears financially stable with improving liquidity and growing equity since its recent incorporation in 2023. The company maintains compliance with filings and shows no immediate solvency concerns. Continued monitoring of creditor levels and cash flow quality, along with deeper operational review, is recommended to ensure sustained financial health and operational viability.

BOUNDS PUBS LTD - Analysis Report

Company Number: 14590338

Analysis Date: 2025-07-20 12:33 UTC

1. Risk Rating: LOW

Justification: The company demonstrates a solid increase in current assets and shareholders' funds over two years, with current assets exceeding current liabilities by a substantial margin as of the latest financial year end. There are no overdue filings, no liquidation status, and the company is active with no apparent governance concerns.

2. Key Concerns:

• Moderate level of short-term creditors: Creditors due within one year increased from £65,087 in 2024 to £122,800 in 2025, which may pressure liquidity if not managed properly.
• Emerging long-term creditor liability: Creditors falling due after one year appeared at £20,045 in 2025, introducing a new medium-term obligation to monitor.
• Relatively limited financial history: Incorporated in 2023, the company has only two full years of filed accounts, which limits trend analysis and long-term operational insight.

3. Positive Indicators:

• Strong growth in current assets from £124k to £291k in one year, indicating improved working capital.
• Shareholders’ funds nearly tripled from £54k to £146k, suggesting capital injections or retained earnings growth.
• Positive net current assets position: £168,653 (2025) compared to £58,941 (2024), reflecting improved liquidity.
• No overdue statutory filings or compliance issues noted.
• Active management with clear director appointments, including a controlling shareholder with full voting rights, which may facilitate swift decision-making.

4. Due Diligence Notes:

• Verify the composition of current assets to confirm liquidity quality (e.g., cash versus receivables or inventory).
• Investigate the nature and terms of the creditors falling due after one year to assess refinancing or repayment risk.
• Review cash flow statements (if available) to confirm the operational cash generation supporting asset growth.
• Assess business model sustainability for a public house and bar in the given location, including any pandemic or regulatory impacts.
• Confirm no director disqualifications or adverse regulatory actions against the named directors.
• Examine the impact of any related party transactions given the controlling shareholder’s involvement.