Company Number: 14686649

Analysis Date: 2025-07-29 14:57 UTC

1. Risk Rating: HIGH
   Combe Down Inns Ltd shows immediate financial distress with net current liabilities and negative shareholder funds within its first year of operation, indicating solvency and liquidity risks.

2. Key Concerns:

• Negative Net Current Assets: With current assets of only £547 against current liabilities of £2,122, the company has a working capital deficit of £1,575, raising concerns about its ability to meet short-term obligations.
• Negative Shareholders’ Funds: The equity is negative at £1,575, suggesting the company is effectively insolvent on a balance sheet basis as of the last accounting date.
• No Employees & Early Stage: The company has no employees reported and was only incorporated in February 2023, implying it is at a nascent stage with limited operational history to demonstrate business sustainability.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, showing regulatory compliance in terms of statutory filing requirements.
• Experienced Management: The director, John Charles Digney, is a publican by occupation, which aligns with the company's SIC code for public houses and bars, suggesting relevant industry experience.
• Clear Ownership Structure: Control is clearly defined between two individuals, which can facilitate swift decision-making.

4. Due Diligence Notes:

• Cash Flow and Funding Strategy: Investigate how the company plans to address its negative working capital and whether additional financing or capital injections are planned.
• Operational Plans and Revenue Generation: Seek management’s business plan, including projected turnover, cost control measures, and whether any trading has commenced.
• Contingent Liabilities or Director Loans: Clarify any off-balance sheet liabilities or director advances not fully disclosed, given the director owes the company a nominal amount (£2) and the early stage of operations.
• Asset Verification: Confirm the composition of current assets (£547) and whether any fixed assets exist that may not be reflected.
• Market Position and Competitive Landscape: Assess the viability of the public house business in Bath, including lease terms for the Garricks Head premises and potential customer base.

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