Company Number: 13738720

Analysis Date: 2025-07-29 20:21 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as evidenced by a sharp decline in current assets and a negative shareholders' funds position in the latest financial year.

2. Key Concerns:

• Negative Shareholders’ Funds: The company’s equity dropped from £614 in 2022 to -£171 in 2023, indicating accumulated losses and erosion of net worth.
• Severe Liquidity Decline: Current assets plunged from £2,021 to £26 while current liabilities remain substantial at £197, resulting in a negative net working capital. This signals potential cash flow distress and inability to meet short-term obligations.
• Short Operating History and Small Scale: Incorporated in late 2021, the company is still in its early development stage with micro-entity status and only 6 employees, raising concerns about operational sustainability and resilience.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, reflecting compliance with statutory filing requirements.
• Single Director with 75-100% Control: Clear ownership and control structure, which can facilitate swift decision-making.
• Stable Employee Count: A slight increase in average employees from 5 to 6 suggests some operational continuity.

4. Due Diligence Notes:

• Investigate the cause of the drastic drop in current assets between 2022 and 2023, including any write-offs, inventory issues, or receivable defaults.
• Review cash flow statements (if available) to understand operational cash generation and financing activities.
• Examine the company’s business model viability in the public houses and bars sector, especially considering market conditions post-2021.
• Assess any contingent liabilities or off-balance-sheet obligations not reflected in the micro-entity accounts.
• Confirm whether the director or controlling shareholder has provided any financial support or guarantees.