Company Number: 13756231

Analysis Date: 2025-07-29 20:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Hansam Batley Ltd, operating in the unlicensed restaurant/cafe sector, shows early signs of financial stabilization with a modest positive net asset position of £30,498 as of the latest accounts (Nov 2023), improving from a negative net asset position the prior year. However, the company continues to face significant liquidity challenges, evidenced by a persistent negative net current asset position (-£180,002), indicating current liabilities exceed current assets by a considerable margin. The directors appear to be managing the business prudently as the company has increased its workforce from 7 to 9 employees, suggesting some operational scaling. Given the micro-entity status and recent establishment (incorporated late 2021), the company is still in a developmental phase and requires close monitoring of cash flow and working capital management before extending larger credit facilities.

2. Financial Strength:

• Fixed assets stand at £210,500, a substantial proportion of total assets, reflecting investment in long-term operational capacity.
• Current assets of £114,918 are insufficient to cover current liabilities of £294,920, resulting in a negative working capital position.
• The total net assets have improved to a positive £30,498 from a prior deficit, indicating some retained earnings or capital injections have begun to shore up the balance sheet.
• Shareholders’ funds mirror net assets, confirming no hidden liabilities off-balance sheet.
• The company remains within the micro-entity accounting category, limiting the depth of reported financial information but suggesting relatively modest scale and complexity.

3. Cash Flow Assessment:

• The substantial negative net current assets position (-£180k) highlights tight liquidity and possible reliance on short-term borrowing or supplier credit to fund daily operations.
• The increase in current assets from £90,653 to £114,918 is positive but still insufficient to mitigate the heavy current liabilities.
• The company must maintain tight control over receivables and payables and possibly improve cash conversion cycles to avoid cash flow stress.
• No audit was performed (per micro-entity exemption), so cash flow information is limited, heightening the importance of monitoring payment behavior and bank statements.

4. Monitoring Points:

• Track net current assets and liquidity ratios closely to identify early signs of cash flow strain.
• Monitor timely filing of accounts and any changes in directors or ownership that might affect governance or operational continuity.
• Watch for any significant increases in current liabilities or delays in creditor payments.
• Observe turnover and profitability trends when future accounts become available to assess improvement in cash generation.
• Evaluate impact of sector-specific risks such as consumer demand shifts or regulatory changes affecting unlicensed food service providers.