Company Number: 14026157

Analysis Date: 2025-07-29 15:51 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with negative net assets worsening year-over-year. The financial position indicates inability to meet current liabilities from current assets, raising serious questions about financial stability.

2. Key Concerns:

• Negative net assets and shareholders' funds of £-4,517 at the latest year-end, deteriorating from £-3,850 the prior year, indicating ongoing losses or accumulated deficits.
• Consistently large net current liabilities (circa £9,000) suggest liquidity issues and potential cash flow constraints to cover short-term obligations.
• Small scale of operations with only two employees and minimal fixed assets, implying limited operational scale and potential vulnerability to market fluctuations in the public house/bar sector.

3. Positive Indicators:

• Compliance with filing deadlines for both accounts and confirmation statements, indicating adherence to statutory requirements and no immediate governance red flags.
• Directors actively involved and transparent in signing off accounts, with no noted disqualifications or governance concerns reported.
• Micro-entity status simplifies reporting and reduces administrative burden, suitable for the company's scale.

4. Due Diligence Notes:

• Investigate the company's cash flow management and sources of funding to support ongoing operations given the negative working capital.
• Review management plans or strategies to return to profitability and improve the balance sheet position.
• Assess any contingent liabilities or off-balance sheet commitments not disclosed in the micro-entity accounts that could impact solvency.
• Confirm no related party loans or director advances that may be masking liquidity issues.
• Understand market conditions for the bar/pub sector locally, including competition and regulatory impacts affecting business sustainability.