NOIR NOIR LTD

Executive Summary

Noir Noir Ltd’s current financial position is weak, characterized by negative net assets and significant liquidity constraints. The company is not in a position to support new credit without material improvement in working capital and cash flow. Close monitoring of its financial recovery and operational performance is essential before reconsidering credit facilities.

NOIR NOIR LTD - Analysis Report

Company Number: 14457416

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

1. Credit Opinion: DECLINE
   Noir Noir Ltd is a newly established micro-entity operating in the public houses and bars sector. The financials for the first full year show a negative net asset position (£-24,544) and significant net current liabilities (£-211,708), indicating poor liquidity and balance sheet weakness. The company’s current liabilities significantly exceed its current assets, which raises concerns about its ability to meet short-term obligations. Given these factors, the company currently lacks sufficient financial strength to warrant approval of new credit facilities.

2. Financial Strength:
   The company holds fixed assets valued at £214,164 but has current assets of only £23,508 against current liabilities of £235,216, producing a negative working capital position. Total liabilities, including £27,000 due after one year, exceed total assets, resulting in negative shareholders’ funds. This indicates the company is technically insolvent on a balance sheet basis at the reporting date. The absence of retained earnings or reserves further underscores the fragile capital structure.

3. Cash Flow Assessment:
   The negative net current assets reflect a liquidity shortfall. With current liabilities nearly ten times current assets, the company appears reliant on external funding or capital injection to support working capital needs. Given the company only employs a single person and has been operating for slightly over a year, it may not yet have generated positive operating cash flows. There is no information on cash flow generation or profitability, but the balance sheet suggests cash flow stress.

4. Monitoring Points:

• Improvement in working capital position, focusing on reducing current liabilities or increasing current assets.
• Trends in profitability and cash flow generation in subsequent financial periods.
• Timely payment history and any overdue creditor balances.
• Capital injections or refinancing activities to strengthen the balance sheet.
• Operational performance in the hospitality sector, considering its sensitivity to economic cycles and regulatory changes.