Company Number: 12753659

Analysis Date: 2025-07-29 18:58 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net assets and net current liabilities over multiple years, indicating ongoing solvency challenges. The latest filings continue to show negative equity and working capital deficiencies, which pose significant risks regarding its ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The balance sheet shows net current liabilities (£2,240 in 2024) and negative net assets, suggesting that current liabilities exceed current assets and total liabilities exceed total assets. This condition is a classic indicator of financial distress.
• Lack of Fixed Assets and Minimal Share Capital: The company holds no fixed assets and has a nominal share capital of £1.00, limiting its asset base to support operations or borrowing capacity.
• Sustained Operating Losses or Cash Flow Issues: The financial data indicates fluctuations and deterioration in net assets from positive to negative over recent years, implying ongoing losses or cash flow problems, notwithstanding the limited data on revenue or profitability.

3. Positive Indicators:

• Stable Employee Base: The company has maintained an average of 6 employees during the last two years, which suggests operational continuity and some level of business activity.
• Timely Filing Compliance: No overdue accounts or confirmation statements were noted, reflecting adherence to statutory filing requirements and regulatory compliance.
• Single Shareholder and Director Control: The sole director and 75-100% shareholder, Mr. Jack O'Reilly, provides clear governance and control, which can facilitate swift decision-making in a small enterprise.

4. Due Diligence Notes:

• Examine Profit and Loss Accounts: Detailed P&L statements should be reviewed to understand revenue trends, gross margins, and operating expenses to clarify the sources of financial distress.
• Assess Cash Flow Statements: Investigate cash flow from operations to verify liquidity and the company's ability to cover short-term liabilities.
• Review Debt Terms and Creditors: Further insight into the nature of current liabilities is essential—whether these are trade payables, tax debts, or loans—and the terms attached to them.
• Investigate Business Model Viability: Given the SIC code (56302 - public houses and bars), the impact of external factors such as market conditions, regulatory changes, or pandemic effects on business sustainability should be assessed.
• Director’s Plans and Capital Injection History: Inquiry into any planned capital injections, restructuring, or turnaround strategies by the director/shareholder would be prudent.