Company Number: 14802900

Analysis Date: 2025-07-29 14:45 UTC

1. Credit Opinion: DECLINE
   Hazels Catering Limited is a newly formed entity with only its first financial year reported. The balance sheet shows negative shareholders' funds of £140 and net current liabilities of the same amount, indicating the company is technically insolvent at this early stage. With minimal cash (£10) and current liabilities of £150, the company currently lacks the financial resources to service any debt or sustain operations without immediate additional funding or capital injection. The absence of an income statement limits visibility on profitability, but the negative equity position and working capital deficit raise significant credit risk. Approval of credit facilities at this stage is not recommended.

2. Financial Strength:
   The financial strength is weak. The company has fixed assets reported as zero and current assets of just £10 in cash. Current liabilities of £150 consist solely of accrued expenses, leading to net current liabilities of £140. Shareholders’ funds are negative £140, reflecting accumulated losses or initial startup costs exceeding capital introduced. The company’s financial position is fragile, with no buffer to absorb financial shocks. The business is in its infancy and has not demonstrated operational or financial stability.

3. Cash Flow Assessment:
   Liquidity is extremely limited, with only £10 in cash against £150 in accrued liabilities due within one year. This negative working capital position indicates the company is reliant on additional funding from shareholders or external sources to meet short-term obligations. Without clear evidence of cash inflows or profitability, the company’s ability to generate positive operating cash flow is uncertain. The working capital deficit and minimal cash reserves highlight a high risk of payment default in the near term.

4. Monitoring Points:

• Quarterly updates on cash flow and working capital position to assess liquidity improvement.
• Profit and loss accounts once available to evaluate operational performance and margin sustainability.
• Additional capital injections or financing arrangements to cover current liabilities.
• Director’s plans for business growth, client acquisition, and risk management.
• Timely filing of future accounts and confirmation statements to ensure compliance and transparency.