INN AT THE STICKS LIMITED

Executive Summary

Inn At The Sticks Limited, a newly incorporated private limited company operating a public house/bar, currently exhibits high financial risk with negative net assets and liquidity deficits. While regulatory compliance is maintained and operational presence established, significant concerns exist around solvency and reliance on director funding. Further due diligence on financial arrangements and business viability is strongly recommended before investment consideration.

INN AT THE STICKS LIMITED - Analysis Report

Company Number: 15111941

Analysis Date: 2025-07-20 15:46 UTC

1. Risk Rating: HIGH
   The company demonstrates significant solvency and liquidity risks, evidenced by negative net assets (£-33,727), negative net current assets (£-20,622), and liabilities exceeding total assets. The company's financial position indicates inability to meet short-term and long-term obligations without further capital infusion.

2. Key Concerns:

• Negative Equity and Net Liabilities: Shareholders’ funds are substantially negative, reflecting accumulated losses or initial funding deficits. This indicates the company is technically insolvent on a balance sheet basis.
• Liquidity Shortfall: Cash on hand (£3,992) is insufficient to cover current liabilities (£24,614), primarily VAT owed, suggesting potential cash flow distress.
• Reliance on Director Loans: Long-term liabilities include £32,028 owed to directors, indicating dependency on related party financing which may not be sustainable or formalized under external credit terms.

3. Positive Indicators:

• No Filing or Compliance Issues: Accounts and confirmation statement filings are up to date with no overdue filings or penalties, demonstrating regulatory compliance.
• Active Trading Status: The company is active and has a functioning website with contact details and social media presence, supporting operational transparency.
• Control Concentration: Single director and owner (Ms. Tracy Jane Down) controlling 75-100% of shares and voting rights may facilitate swift decision-making and capital injections if required.

4. Due Diligence Notes:

• Verify the nature and terms of the director loans, including repayment schedules and interest, to assess financial risk and potential impact on solvency.
• Investigate the business plan and cash flow projections to evaluate operational sustainability and timeline for achieving profitability or positive net assets.
• Review any contingent liabilities or off-balance-sheet commitments not captured in the accounts that could exacerbate financial risk.
• Confirm whether the company has insurance or other risk mitigants in place given negative equity and operational risks.
• Assess market conditions for the pub/bar sector in Carmarthenshire to understand external risks impacting business viability.