LAMBOURN CATERING BUTCHERS LIMITED

Executive Summary

Lambourn Catering Butchers Limited, a recently incorporated small private company, exhibits liquidity and solvency stress evidenced by a significant increase in current liabilities exceeding current assets as of March 2024. Although shareholders’ funds have improved and regulatory filings are current, the large hire purchase liabilities and debtor balances warrant further scrutiny. Investors should conduct detailed due diligence focusing on cash flow management and contract obligations before considering engagement.

LAMBOURN CATERING BUTCHERS LIMITED - Analysis Report

Company Number: 14502743

Analysis Date: 2025-07-29 12:24 UTC

1. Risk Rating: HIGH
   The company shows a negative net current asset position as at 31 March 2024, indicating potential liquidity issues. Current liabilities have nearly tripled compared to the prior year, significantly exceeding current assets, which raises concerns about short-term solvency.

2. Key Concerns:

• Negative Net Working Capital: Net current assets declined from a positive £8,941 in 2023 to negative £27,147 in 2024, suggesting inability to cover short-term obligations with current assets.
• Rapid Increase in Current Liabilities: Current liabilities increased from £42,229 to £114,332 within one year, driven by new hire purchase contracts (£50,885), trade creditors, and other short-term debts, potentially straining cash flows.
• Limited Operating History and Small Scale: Incorporated in late 2022 with only two years of financial data; the company remains small with modest cash balances (£24,971) and a small employee base (4 employees), making it vulnerable to operational and market risks.

3. Positive Indicators:

• Increasing Shareholders’ Funds: Equity increased from £8,941 in 2023 to £15,765 in 2024, reflecting retention of earnings or capital injection.
• Tangible Fixed Assets Investment: The company acquired assets (net book value £42,912) possibly supporting operational capacity growth.
• No Overdue Filings or Compliance Issues: Accounts and confirmation statements are up to date, indicating good governance and regulatory compliance so far.

4. Due Diligence Notes:

• Investigate the nature and terms of hire purchase contracts contributing substantially to current liabilities—assess repayment schedules and impact on cash flows.
• Review debtor aging and collectability given the large increase in trade debtors (£30,412 to £62,214) to evaluate cash conversion risk.
• Obtain management’s commentary on business plan, profitability, and cash flow forecasts to understand sustainability and ability to meet obligations.
• Confirm whether the company has access to additional financing or capital support from the sole shareholder, who controls 75-100% of shares and voting rights.
• Examine any contingent liabilities or off-balance sheet commitments not disclosed in the accounts.