Company Number: 12919210

Analysis Date: 2025-07-20 18:05 UTC

1. Credit Opinion: DECLINE
   Pater Pub Co Ltd exhibits significant financial distress with growing net liabilities and no liquidity as of the latest year. The company shows worsening negative shareholders’ funds, increasing director loans, and zero cash balance, indicating inability to service debt or meet short-term obligations without additional funding. The absence of employees and reliance on director loans rather than external credit further undermine confidence in repayment capability. Without a clear turnaround plan or capital injection, credit risk is high.

2. Financial Strength:
   The balance sheet reveals a deteriorating financial position over the last four years. Net assets have declined from a negative £4,985 in 2020 to a negative £66,114 in 2024. Current liabilities increased substantially, now exceeding current assets which have dropped to zero in 2024, leading to zero net current assets. The company relies entirely on director loans (£66,114) classified as long-term creditors, evidencing external financing constraints and weak capital structure. There are no fixed assets reported, which limits collateral value.

3. Cash Flow Assessment:
   Cash at bank has reduced from £9,547 in 2020 to nil in 2024, with no reported operating cash inflows sufficient to improve liquidity. Debtors have been written off entirely in 2024, suggesting collection issues or cessation of trade activities. Current liabilities are due within one year but the company has no liquid assets to cover them. Working capital is negative and worsening, implying ongoing cash flow strain and inability to support day-to-day operations without external support.

4. Monitoring Points:

• Director loans and their terms: assess if these are being serviced or converted to equity.
• Cash flow improvements or capital injections: necessary to avoid insolvency risk.
• Filing of future accounts and confirmation statements to verify compliance and operational status.
• Any changes in trading activity, employee numbers, or asset acquisitions that could signal recovery.