OGGY'S BAR OF HANLEY LTD

Executive Summary

Oggy’s Bar of Hanley Ltd displays high financial risk due to escalating net liabilities and negative working capital, signaling potential solvency and liquidity challenges. The company’s survival currently depends on director funding support, underscoring the need for further scrutiny of its cash flow and debt servicing capacity. However, compliance with statutory filing requirements and continued operation in its sector provide some operational continuity.

OGGY'S BAR OF HANLEY LTD - Analysis Report

Company Number: 12598159

Analysis Date: 2025-07-20 18:07 UTC

1. Risk Rating: HIGH

Justification: The company exhibits significant solvency concerns with net liabilities of £40,858 as at 31 May 2024, a deterioration from previous years. Negative net current assets and shareholders' funds indicate financial distress. The continued reliance on director support for going concern status poses additional risk.

2. Key Concerns:

• Solvency deterioration: Net liabilities have worsened substantially over the last two years, moving from positive net assets in 2021 to a sizeable deficit in 2024.
• Liquidity shortfall: Current liabilities (£41,381) exceed current assets (£11,105) by a large margin, implying potential cash flow difficulties to meet short-term obligations.
• Reliance on director funding: The director’s note on going concern reliance on funds introduced "as and when necessary" suggests operational cash flow is insufficient to sustain the business without external support.

3. Positive Indicators:

• Compliance status: The company is active, up to date with all filings including accounts and confirmation statements, with no overdue reports.
• Established operations: Incorporated in 2020 and continuing to trade in a defined niche (public houses and bars) with a modest employee base (3 employees).
• Fixed assets presence: Although reduced, tangible fixed assets remain on the balance sheet, indicating some capital investment.

4. Due Diligence Notes:

• Review underlying causes for the sharp increase in current liabilities and whether these are sustainable or subject to restructuring.
• Investigate the nature and terms of the long-term bank loan (£17,464) to understand repayment obligations and impact on cash flows.
• Assess the director funding arrangements in detail, including any formal agreements or informal arrangements supporting going concern.
• Examine turnover and profitability trends (not provided here) to evaluate operational performance and future viability.
• Verify if any contingent liabilities or off-balance sheet exposures exist that could exacerbate financial strain.