Company Number: 13748662

Analysis Date: 2025-07-29 13:13 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. Burton Pizza Limited is an active micro-entity operating in the take-away food sector with moderate asset base and positive net assets. The company shows growth in fixed assets and equity over the last two years and an increasing workforce, indicating some business expansion. However, current liabilities substantially exceed current assets, resulting in negative net current assets, which may suggest short-term liquidity pressures. The director’s significant control and stable management support continuity, but the relatively small scale and tight liquidity require monitoring. Lending approval should be conditional on maintaining or improving working capital and cash flow metrics.

2. Financial Strength:
   The company has modest fixed assets (£40,408 in 2023) and total net assets of £3,379, which have improved from £1,607 in 2022. The balance sheet shows positive equity but thin capital buffers. Current liabilities (£57,901) exceed current assets (£10,252) by a large margin, leading to negative net current assets (£-37,029). This indicates reliance on short-term financing or payables to fund operations. The company’s financial position is stable but vulnerable due to limited liquidity and low retained earnings typical for a growing micro-entity.

3. Cash Flow Assessment:
   The negative working capital position suggests potential cash flow constraints in meeting short-term liabilities. The increase in prepayments and accrued income (£10,620 in 2023) may provide some short-term liquidity relief, but overall current liabilities remain high relative to cash and receivables. The growth in average employees from 2 to 6 signals increasing operational costs that must be supported by revenue growth. Close attention should be paid to cash conversion cycles, timely collection of receivables, and control of payables to ensure ongoing liquidity.

4. Monitoring Points:

• Working capital trends and improvement in net current assets
• Cash flow from operations and ability to meet short-term obligations without external support
• Revenue growth and profitability to strengthen reserves
• Management of payables and receivables to optimize liquidity
• Any changes in director or ownership that could impact governance or control