INDULGE AT WESTWARD HO LIMITED

Executive Summary

Indulge at Westward Ho Limited is a start-up in the take-away food sector with a currently weak liquidity position and declining net assets. The company depends on creditor support to continue as a going concern, posing some risk to repayment capacity. Credit approval is conditional and requires close monitoring of cash flows and working capital management.

INDULGE AT WESTWARD HO LIMITED - Analysis Report

Company Number: 14414273

Analysis Date: 2025-07-29 12:42 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Indulge at Westward Ho Limited is a very young company (incorporated in late 2022) operating in the take-away food sector. The company’s latest financials show a net current liabilities position and a decline in net assets from £9,646 in 2023 to £7,276 in 2024. The going concern note highlights reliance on creditor support and uncertain working capital availability. While there is no overdue filing and no negative director conduct, the financial position indicates liquidity pressure and limited buffer. Credit facilities could be considered but should be conditional on regular monitoring of cash flows and creditor support continuation.

2. Financial Strength:
   The company’s fixed assets increased significantly from £11,470 to £24,578, reflecting capital investment, but current liabilities rose sharply to £36,345, outweighing current assets of £25,188 and resulting in negative net working capital of £11,157. Shareholders’ funds remain positive but have decreased. The increase in provisions for liabilities (from £3,040 to £6,145) further weakens net assets. The balance sheet shows limited financial strength and a delicate capital structure typical of a start-up still establishing itself.

3. Cash Flow Assessment:
   Cash at bank stands at £24,439, marginally higher than the previous year, but debtor balances have fallen significantly from £3,144 to £199, which may indicate tighter credit control or reduced sales on credit. Stock levels are low (£550). The negative net current assets suggest liquidity constraints that could impair the company’s ability to meet short-term obligations without continued support or cash inflows. The absence of employees implies limited fixed overheads but also potential operational scale constraints.

4. Monitoring Points:

• Monthly cash flow forecasts to track liquidity and creditor payments
• Changes in current liabilities and provisions to detect accumulating short-term obligations
• Debtor collection trends to ensure cash inflows are sustained
• Impact of capital expenditure on cash reserves and asset utilization
• Directors’ actions to improve working capital and profitability