Company Number: 13099646

Analysis Date: 2025-07-20 15:36 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity and solvency concerns as evidenced by persistent net current liabilities and a sharp decline in net assets in the latest reported year. The current liabilities exceed current assets by a substantial margin, indicating potential difficulty in meeting short-term obligations.

2. Key Concerns:

• Severe Liquidity Shortfall: The net current assets position worsened from a positive £60,866 in 2022 to a negative £107,789 in 2023, driven by declining current assets (notably cash reduced by nearly 50%) and sustained high current liabilities (~£182,503).
• Declining Net Asset Value: Net assets plummeted from £28,649 in 2022 to just £4,667 in 2023, eroding shareholder funds and indicating weakening financial stability.
• High Short-Term Borrowings and Creditors: Bank loans and overdrafts remain sizable (£38,994), alongside significant other creditors (£126,299), which may pressure cash flows and operational continuity.

3. Positive Indicators:

• Asset Base: The company maintains tangible fixed assets (net £99,656) providing some collateral value.
• Compliance: No overdue filings for accounts or confirmation statements, reflecting adherence to regulatory deadlines.
• Stable Ownership and Management: Controlled 100% by Mr John Spriggs with no director disqualifications or governance issues reported.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp reduction in cash and current assets between 2022 and 2023.
• Review the nature and terms of the company’s current liabilities, especially the breakdown of "other creditors" and bank borrowings to assess repayment schedules and covenant compliance.
• Assess ongoing operational cash flow generation capacity given the licensed restaurant SIC code and single employee reported, considering the impact of economic or sector-specific challenges.
• Confirm whether any contingent liabilities or off-balance sheet obligations exist that could further impair financial health.