Company Number: 13526711

Analysis Date: 2025-07-20 17:47 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   FQBSL Ltd is a young private limited company operating in the licensed restaurant and public house sector. The company shows negative net assets and shareholders' funds, which indicate an accumulated loss position and balance sheet weakness. However, current assets exceed current liabilities, suggesting some short-term liquidity. The significant long-term creditor balance (amounts owed to participating interests £327k) is a risk factor, as it may pressure cash flow if demands arise. Given this, credit approval should be conditional on ongoing monitoring of profitability, cash flow, and management of related party debt. Careful attention to repayment terms and covenant compliance is needed.

2. Financial Strength:

• Negative net assets of £180,688 as of 31 October 2023, worsening from -£90,611 in prior year, indicate erosion of equity and ongoing losses historically.
• Fixed assets of £95,924 provide some tangible backing but are modest relative to liabilities.
• Current assets (£83,878) exceed current liabilities (£33,246), producing positive net current assets of £50,632 which supports short-term obligations.
• The large non-current creditor balance (£327,244) represents related party debt (participating interests) and significantly impacts overall solvency metrics.

3. Cash Flow Assessment:

• Cash at bank is modest at £17,462, down from £22,675 the prior year, reflecting limited cash reserves relative to liabilities.
• Debtors (£55,718) are a sizeable portion of current assets but may not be immediately realizable.
• Positive net current assets indicate working capital is currently manageable, but the company’s ability to convert short-term assets to cash promptly will be critical.
• The company’s liquidity depends heavily on continuing support from related parties or improved operating cash generation.

4. Monitoring Points:

• Track profitability trends and efforts to reduce accumulated losses to restore positive equity.
• Monitor cash flow closely, especially cash conversion cycle and debtor collections.
• Review terms and repayment schedules of the related party debt to assess refinancing or settlement risk.
• Watch for any delays or issues in statutory filings or covenant breaches.
• Assess management’s strategy to improve financial position and operational performance.