GRUB IN A TUB LTD

Executive Summary

Grub In A Tub Ltd is a small but growing hospitality business showing improved financial stability and positive net assets. While liquidity and working capital are adequate, the company’s size and sector risks warrant conditional credit approval with close ongoing monitoring of cash flow and debtor management. Overall, the company demonstrates sound financial stewardship but remains vulnerable to external economic factors.

GRUB IN A TUB LTD - Analysis Report

Company Number: 13570292

Analysis Date: 2025-07-29 18:39 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Grub In A Tub Ltd shows improving financial strength with net assets growing from £2,352 in 2023 to £15,734 in 2024, supported by positive net current assets (£14,609). However, the company is very small (single employee, limited fixed assets) and relatively new (incorporated 2021). The business operates in the hospitality sector (SIC 56302), which can be vulnerable to economic cycles and external shocks. Given the limited size and scale, credit approval is recommended with conditions—specifically, monitoring ongoing cash flow and profitability closely and ensuring no deterioration in working capital or creditor terms.

2. Financial Strength:
   The balance sheet shows a healthy increase in net assets and shareholders’ funds, driven by improved working capital and retained earnings. Tangible fixed assets are minimal (£1,125), reflecting the business model and size. Current assets significantly exceed current liabilities, indicating a comfortable liquidity buffer. Shareholders' funds are entirely composed of profit and loss reserves, showing the company is retaining earnings rather than relying on additional capital injections. No borrowings or overdrafts are reported, which reduces financial risk but also limits leverage capacity.

3. Cash Flow Assessment:
   Cash at bank increased slightly to £8,816, providing some liquidity cushion. Trade debtors increased markedly to £11,911, which raises a minor concern on collection risk but is offset by a proportional rise in current liabilities (£12,073). Net current assets of £14,609 represent adequate short-term financial stability. The company’s working capital management appears sound, but given the business sector, it is important to watch debtor days and creditor payment terms to avoid cash flow stress.

4. Monitoring Points:

• Track debtor collection periods and any increase in overdue receivables.
• Monitor cash balances monthly to ensure liquidity is maintained, especially given seasonal or economic volatility in hospitality.
• Review profit trends on future accounts filings to confirm sustainable profitability.
• Watch for any changes in directors or PSC control that might impact governance or financial stewardship.
• Confirm continuation of compliance with filing deadlines and absence of adverse credit events.