DANNY DINER LIMITED

Executive Summary

Danny Diner Limited is a newly formed micro-entity restaurant business with a significantly negative net asset position and working capital deficit as of its first full financial year. Its current financial profile suggests insufficient liquidity and capital to support credit risk. Without demonstrable improvement in financial performance or cash flow, credit facilities are not recommended at this stage.

DANNY DINER LIMITED - Analysis Report

Company Number: 14520268

Analysis Date: 2025-07-29 15:16 UTC

1. Credit Opinion: DECLINE
   Danny Diner Limited shows weak financial strength with net liabilities of £39,012 as at 31 December 2023, indicating negative shareholders’ funds. The company’s current liabilities (£74,998) significantly exceed current assets (£21,058), resulting in a substantial working capital deficit of £53,940. As a recently incorporated micro entity (since December 2022) operating in the unlicensed restaurant sector, it has limited trading history and no evidence of profitability or positive cash flow. This raises serious concerns about its ability to service debt or meet credit obligations reliably at this stage. Without clear evidence of improving financial performance or capital injection, extending credit would be high risk.

2. Financial Strength:
   The balance sheet is fragile, showing net liabilities rather than net assets, which implies the company is technically insolvent on a net asset basis. Fixed assets are minimal (£14,928) and current liabilities are large relative to current assets, reflecting high short-term obligations. Negative net current assets highlight liquidity pressure. Shareholder equity is negative due to accumulated losses or initial funding shortfall. The single director holds full control, but there is no indication of external financial backing or reserves to support growth or absorb shocks.

3. Cash Flow Assessment:
   Current assets mostly consist of cash and short-term receivables but are insufficient to cover short-term liabilities, indicating poor liquidity and risk of cash flow strain. The company’s inability to meet current liabilities without additional financing or operational cash generation is a critical concern. The micro-entity accounts do not disclose a profit and loss statement, but the net liability position strongly suggests ongoing losses or upfront costs that have not yet been offset by revenues.

4. Monitoring Points:

• Improvement in net current assets and working capital position
• Evidence of profitability or positive cash flow from operations
• Any capital injections or loan repayments reducing net liabilities
• Timely filing of future accounts and confirmation statements
• Changes in director or ownership structure that might impact financial support