Company Number: SC655930

Analysis Date: 2025-07-20 13:13 UTC

1. Risk Rating: MEDIUM

Justification: Crieff Fish Bar Ltd demonstrates positive net assets and shareholder funds with no overdue filings, indicating basic compliance and solvency. However, the significant level of current debt, particularly the director’s loan account and trade creditors, alongside fluctuating net current assets and a relatively small equity base, suggests moderate liquidity risk. The company operates in a competitive, low-margin sector (take-away food) which may impact operational stability.

2. Key Concerns:

• High Director’s Loan Account Liability: £41,300 is owed to the director, a substantial portion of current liabilities, which may indicate reliance on internal funding and potential cash flow constraints.
• Volatile Current Liabilities: Current liabilities decreased from £83,416 in 2023 to £56,176 in 2024 but remain significant relative to cash (£8,938) and debtors (£106,093), potentially pressuring short-term liquidity.
• Limited Share Capital and Equity Base: Share capital remains nominal (£100), and while net assets improved to £50,178 in 2024, the company’s equity is relatively modest given the liabilities, which may limit financial resilience.

3. Positive Indicators:

• Consistent Compliance: No overdue accounts or confirmation statements, reflecting good regulatory compliance practices.
• Positive Net Assets Growth: Net assets more than doubled from £23,911 in 2023 to £50,178 in 2024, indicating improved financial position.
• Adequate Working Capital: Net current assets increased to £59,855 in 2024, suggesting the company can cover short-term liabilities with current assets.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account: repayment schedule, interest, and potential impact on liquidity.
• Review aging of debtors (£106,093) to assess collectability and any credit risk.
• Analyze cash flow statements (not provided) to understand operational cash generation and any seasonal fluctuations.
• Examine the competitive environment for takeaway food shops locally to gauge operational stability and growth prospects.
• Confirm absence of any contingent liabilities or off-balance sheet commitments.