Company Number: 14486927

Analysis Date: 2025-07-20 19:07 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Phillips Taverns Limited is a recently incorporated private limited company operating in the public houses and bars sector. The company is currently showing net liabilities of £19,687 primarily due to long-term borrowing of £44,047 but has positive net current assets and tangible fixed assets. The financials indicate early-stage investment and build-out with some working capital adequacy. However, the negative equity and relatively high debt compared to assets suggest some risk. Conditional approval is recommended, subject to ongoing monitoring of cash flow and debt servicing capabilities, as well as future profitability improvements.

2. Financial Strength:

• Fixed assets stand at £23,348, reflecting investment in motor vehicles, fixtures, and equipment, which supports operational capacity.
• Current assets total £21,447, including cash of £1,251, debtors of £5,140, and short-term deposits of £15,056.
• Current liabilities are £20,435, resulting in net current assets (working capital) of £1,012, a minimal but positive buffer.
• The company carries significant long-term debt (£44,047) which exceeds total assets less current liabilities, leading to net liabilities of £19,687 and negative shareholders’ funds.
• Share capital is nominal at £1, reflecting a small equity base.
  Overall, the balance sheet shows early-stage financial stretching with leveraged funding, but tangible assets and short-term deposits provide some support.

3. Cash Flow Assessment:

• Cash at bank is low (£1,251), but there is a sizeable amount in short-term deposits (£15,056) which could be accessed if needed.
• Positive net current assets indicate sufficient short-term liquidity to meet immediate obligations.
• Debtors of £5,140 suggest some cash inflow expected from trade receivables.
• The company’s ability to service its long-term loan of £44,047 depends on operational cash generation which is not detailed but critical to monitor.
• The absence of an audit and limited historical data (one year) restricts full cash flow analysis; however, liquidity appears cautiously adequate for short-term commitments.

4. Monitoring Points:

• Track operational cash flow and profitability trends to ensure debt servicing capacity improves.
• Monitor working capital closely to prevent liquidity shortfalls, especially given the tight net current assets position.
• Review repayment schedule and terms of the £44,047 long-term loan for refinancing or restructuring risks.
• Observe equity position and any capital injections to strengthen the balance sheet.
• Watch for timely filings of future accounts and confirmation statements to maintain compliance.