Company Number: 14251392

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

1. Risk Rating: MEDIUM
   Cove Bars Limited is a micro-entity with modest net assets (£6,400) and a relatively high level of creditors payable after one year (£38,834) compared to its total assets. While current assets exceed current liabilities, indicating short-term liquidity, the high non-current liabilities raise concerns about long-term solvency. The company is newly incorporated (2022) and operates in the hospitality sector, which can be volatile.

2. Key Concerns:

• High Long-term Creditors: The company has £38,834 in creditors falling due after more than one year, significantly impacting net assets and indicating reliance on extended financing.
• Low Equity Base: Shareholders’ funds of only £6,400 provide limited cushion against operational setbacks or unexpected liabilities.
• Limited Financial History: As a very recent start-up with just over one year of accounts, there is insufficient track record to assess operational stability or growth trajectory.

3. Positive Indicators:

• Positive Net Current Assets: Current assets exceed current liabilities by £24,422, suggesting short-term liquidity is adequate.
• No Overdue Filings: Both accounts and confirmation statement are up to date, indicating compliance with regulatory requirements and governance discipline.
• Single Owner Control: The sole director and 75-100% shareholder, Christopher Wong, suggests centralized decision-making which may support agile management.

4. Due Diligence Notes:

• Obtain detailed breakdown of long-term creditors to understand the nature and terms of these liabilities.
• Review cash flow statements and bank statements to confirm liquidity beyond balance sheet figures.
• Assess business model viability and market conditions in the public houses and bars sector, especially post-pandemic recovery trajectory.
• Verify director’s background for any regulatory or reputational risks, though none are indicated here.
• Monitor upcoming filings and operational updates for changes in financial position or governance.