Company Number: 13958903

Analysis Date: 2025-07-20 11:25 UTC

1. Credit Opinion: DECLINE
   Grill Side Ltd exhibits a concerning deterioration in financial position over its two years of operation. Its net current assets turned negative in the latest year, indicating liquidity stress. The company’s net assets have fallen sharply from £1,865 to £105, suggesting erosion of capital and possible losses. Given the micro-entity scale and limited operating history, there is insufficient evidence of stable cash generation or financial resilience to support ongoing credit risk.

2. Financial Strength:
   The balance sheet shows minimal fixed assets (£627) and current assets of £869 against current liabilities of £1,391 as of 31 March 2024, resulting in a negative working capital of £522. This is a significant decline from the prior year when net current assets were £1,865. The total net assets are barely positive at £105, reflecting limited equity buffer. The rapid depletion of net assets and working capital raises concerns on solvency and the ability to meet short-term obligations.

3. Cash Flow Assessment:
   Current liabilities exceed current assets, indicating potential cash flow difficulties. Negative net current assets suggest that the company may struggle to cover immediate debts and operating expenses without additional funding or cash inflows. No profit and loss data was provided, but the net asset decline implies losses or withdrawals. The single employee and micro-entity status limit operational scale and financial flexibility.

4. Monitoring Points:

• Monitor quarterly cash flow statements and bank balances closely for liquidity status.
• Watch for subsequent filings including profit and loss accounts to assess profitability trends.
• Keep track of any shareholder capital injections or director loans that might support liquidity.
• Observe payment patterns on existing trade credit and any delays or defaults reported.
• Review any changes in directors or control that might indicate restructuring or distress.