ETHERINGTON'S OF YORKSHIRE LTD

Executive Summary

Etherington's of Yorkshire Ltd, a micro-entity delicatessen established in 2022, has shown a marked improvement in financial position by August 2024 with positive net assets and liquidity. However, historical negative equity and high liabilities warrant cautious monitoring. The company's small scale and asset reduction suggest operational challenges that require further due diligence to confirm sustainable viability.

ETHERINGTON'S OF YORKSHIRE LTD - Analysis Report

Company Number: 13909971

Analysis Date: 2025-07-20 17:08 UTC

1. Risk Rating: MEDIUM
   The company shows signs of recent financial improvement with positive net assets as of August 2024, but the historical position includes significant liabilities and prior losses indicating potential solvency concerns. The small scale and limited fixed assets constrain operational resilience.

2. Key Concerns:

• Prior significant negative equity: The company reported shareholders' funds of -£31,653 as of February 2023, reflecting accumulated losses or funding gaps that may impact financial stability.
• Previous high current liabilities: Current liabilities were £50,157 in early 2023, substantially exceeding current assets at that time, signaling liquidity stress. Although improved by August 2024, the prior position is a cautionary indicator.
• Small asset base and workforce reduction: Fixed assets dropped from £26,033 to zero by August 2024 and employee count decreased from 6 to 4, which may suggest downsizing or operational challenges impacting sustainability.

3. Positive Indicators:

• Improved balance sheet in latest period: Current assets now exceed current liabilities with net current assets of £3,201 and positive shareholders' funds, indicating strengthening liquidity and solvency.
• Timely compliance with filings: No overdue accounts or confirmation statements, demonstrating regulatory diligence and governance discipline.
• Clear ownership and stable management: Two directors with equal significant control, both resident in the UK, providing transparency in control and continuity.

4. Due Diligence Notes:

• Investigate the nature and settlement of the prior significant current liabilities and the steps taken to improve liquidity.
• Review cash flow statements and profit and loss accounts (not included in the latest filings) to assess ongoing operational performance and profitability.
• Confirm the reason for reduction of fixed assets to zero and its impact on business operations.
• Verify if any contingent liabilities or off-balance-sheet obligations exist that could affect solvency.
• Assess customer base, supplier relationships, and market position given the niche retail SIC code (47220) to evaluate business sustainability.