Company Number: SC786314

Analysis Date: 2025-07-20 16:26 UTC

1. Risk Rating: MEDIUM
   Justification: PORTOBAY LTD is a newly incorporated micro-entity with a small asset base and modest net assets. Current liabilities slightly exceed current assets, indicating potential liquidity pressure. However, no overdue filings or insolvency status are present, and shareholder funds are positive.

2. Key Concerns:

• Liquidity Position: Current liabilities (£52,144) exceed current assets (£50,442) by about £1,700, suggesting tight working capital management which could impact short-term solvency.
• Accruals and Deferred Income: The balance sheet shows £5,000 in accruals and deferred income, which may indicate upcoming obligations or revenue recognition issues affecting cash flow.
• Newly Incorporated Status: Incorporated in October 2023 with only one year of financial history, operational sustainability and future cash flows remain unproven.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: Net assets of £11,831 demonstrate initial capital adequacy above liabilities.
• No Overdue Filings or Compliance Issues: Company is current on accounts and confirmation statement filings, reflecting compliance with statutory obligations.
• Experienced Directors with Significant Control: The two directors each own 25-50% shares and appear engaged, which could favor stable governance.

4. Due Diligence Notes:

• Review cash flow projections and working capital cycle to assess short-term liquidity risk more precisely.
• Confirm nature and timing of accruals and deferred income to understand potential cash outflows or revenue recognition risks.
• Investigate business plan and market positioning in the public houses and bars sector (SIC 56302) to evaluate operational sustainability.
• Verify background and track record of directors to assess governance quality, noting both are resident in the UK with Romanian nationality.
• Monitor subsequent filings for any changes in financial position or director appointments.