HELLENIC RESTAURANTS LIMITED

Executive Summary

Hellenic Restaurants Limited displays improving financial health with positive working capital and growing shareholders' funds, indicating sound creditworthiness. The company operates with prudent financial management and maintains adequate liquidity for its size and sector. Continued monitoring of operational cash flow and liabilities is recommended to sustain its credit profile.

HELLENIC RESTAURANTS LIMITED - Analysis Report

Company Number: 12772876

Analysis Date: 2025-07-29 16:38 UTC

1. Credit Opinion: APPROVE
   Hellenic Restaurants Limited presents a stable financial position for a micro-entity operating in the licensed restaurant sector. The company has demonstrated consistent growth in net current assets and shareholders' funds over the last three years, recovering from a negative working capital position in 2021 to a healthy surplus in 2024. There are no overdue filings or indications of financial distress. The directors appear to maintain sound stewardship with timely accounts and returns. Given this profile, the company should be considered creditworthy for standard SME credit facilities.

2. Financial Strength:
   The balance sheet shows a modest but improving financial footing. Total net current assets increased from £57,446 in 2023 to £81,664 in 2024, indicating enhanced liquidity and an ability to cover short-term liabilities comfortably. Shareholders' funds have grown from a negative position in 2021 (-£29,198) to positive £81,664 in 2024, reflecting accumulated profits and retained earnings. Fixed assets are minimal, consistent with the nature of the business, and do not materially affect asset strength. Overall, the company maintains a conservative capital structure with no evident gearing risk.

3. Cash Flow Assessment:
   Current assets stand at £224,394 against current liabilities of £142,730, resulting in a positive working capital of £81,664. This provides a satisfactory liquidity buffer to meet operational expenses and short-term debt obligations. Although detailed cash flow statements are unavailable, the company's ability to maintain positive net current assets and increase equity suggests prudent management of cash resources. The absence of significant fixed assets implies lower capital expenditure requirements, which supports cash conservation.

4. Monitoring Points:

• Continue to monitor working capital trends and ensure that current liabilities do not outpace current assets.
• Watch for any changes in sales or profitability that could impair cash flow, especially given the restaurant industry's vulnerability to economic cycles and regulatory changes.
• Review director conduct or changes in management which could affect governance or operational stability.
• Assess any emerging liabilities or contingent risks disclosed in future filings.
• Confirm ongoing compliance with filing deadlines and statutory requirements to avoid penalties.