Company Number: 15203251

Analysis Date: 2025-07-19 12:43 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   OMAKASE HAMPSTEAD LTD is a recently established private limited company (incorporated October 2023) operating in event catering and restaurant services. The company shows a positive net current asset position (£66k) and net assets of approximately £40k as of October 2024, indicating initial financial stability. However, it carries a £75k bank loan due after one year, which presents a moderate leverage risk for a start-up with no operating history beyond its first year. The absence of employees and relatively modest fixed assets indicate a lean operation, but also limited scale. The company’s ability to generate sufficient cash flow to service debt and operational expenses needs close monitoring. Given the short trading history and modest equity base, credit approval should be conditional on ongoing financial performance updates and demonstration of positive cash flow from operations.

2. Financial Strength:
   Balance sheet indicates fixed tangible assets of £48,812 comprising plant, machinery, and fixtures, supported by current assets of £200,826, mainly cash (£122,880) and debtors (£77,946). Current liabilities of £134,800 include trade creditors and director loans, resulting in a healthy net current asset position. The company has a bank loan of £75,000 due beyond one year, contributing to gearing. Shareholders’ funds stand at £39,838, reflecting early retained profits. Overall, the company is solvent with a positive working capital position, but the leverage from the bank loan and director loans should be considered in credit risk assessment.

3. Cash Flow Assessment:
   The company holds a strong cash balance for a start-up at £122,880, which supports short-term liquidity. Debtor balances (£77,946) are reasonable but require ageing analysis to confirm collectability. Trade creditors and other current liabilities are managed within current asset coverage, supporting day-to-day operations. Absence of employees implies lower fixed overheads but also limited revenue generation capacity. Cash flow from operations should be closely tracked to ensure the company can meet interest and principal repayments on the bank loan and director loans, especially as the business scales.

4. Monitoring Points:

• Quarterly cash flow statements and debtor aging reports to monitor liquidity and receivables risk.
• Profit and loss performance compared against budget to assess revenue growth and cost control.
• Status of bank loan repayments and any additional borrowings or director loan movements.
• Any changes in operational scale, including employee hiring and fixed asset additions.
• Confirmation of ongoing compliance with filing deadlines and regulatory requirements.