Company Number: 13189720

Analysis Date: 2025-07-29 17:24 UTC

1. Risk Rating: MEDIUM
   The company shows some positive signs such as net assets and no overdue filings, but current liabilities exceeding current assets in prior years and dividend payments exceeding retained earnings suggest liquidity and solvency caution.

2. Key Concerns:

• Current Liabilities vs Current Assets: The company had negative net current assets (£-6,302) in 2023 and 2022, indicating potential liquidity stress, though slightly positive in 2024 (£951).
• Dividend Payments Exceeding Retained Earnings: Dividends declared (£52,000 in 2024) appear high relative to retained earnings (~£26,837), raising concerns about cash flow management and sustainability of distributions.
• Provisions and Accruals: Significant provisions (£9,094) and accruals (£12,903) reduce net assets and could indicate outstanding liabilities or contingent risks impacting financial stability.

3. Positive Indicators:

• Net Assets Positive and Stable: Net assets remain positive around £27k, indicating some equity buffer despite liabilities.
• No Overdue Filings: Accounts and confirmation statements are filed timely, reflecting compliance and good corporate governance.
• Going Concern Assumption Supported: Directors explicitly state accounts prepared on a going concern basis with no audit requirement due to small company status, suggesting no immediate distress signals.

4. Due Diligence Notes:

• Review Cash Flow Statements and Profit & Loss Account: To assess operational cash generation, liquidity trends, and impact of dividend payments on working capital.
• Investigate Nature of Provisions and Accruals: To understand potential liabilities and future cash outflows.
• Examine Director and Related Party Transactions: Given directors control 100% shareholding and large dividends relative to earnings, verify if distributions are sustainable or impair operational funding.
• Verify Impact of COVID or Market Conditions: As a hospitality business, assess external risks affecting trading performance and solvency.