Company Number: 13250235

Analysis Date: 2025-07-20 17:47 UTC

1. Credit Opinion:
   APPROVE with caution. Propa Pub Ltd is a micro private limited company operating in the public house sector with stable net assets and positive working capital. The company demonstrates consistent balance sheet strength over the last three years without audit requirements, indicative of small scale but sound financial stewardship. However, limited financial disclosures and modest scale require monitoring of cash flow and operational performance, especially given the hospitality sector’s sensitivity to economic cycles.

2. Financial Strength:
   The company shows steady net assets of approximately £4,700-£4,800 over the past three years, up from £3,000 in the initial year. Current assets consistently exceed current liabilities, resulting in positive net current assets between £4,500 and £4,750, reflecting adequate short-term solvency. Shareholders’ funds align with net assets, showing no apparent hidden liabilities. The minimal share capital (£2) is typical for micro companies and not a concern in isolation. Overall, the balance sheet is stable but modest in size, consistent with a small-scale pub business.

3. Cash Flow Assessment:
   Cash holdings decreased from £11,300 in 2021 to a lower, though not explicitly stated, level in 2024, with current assets remaining stable around £13,000. Debtors are significant, approximately £7,900 in 2023, indicating reliance on receivables which could impact liquidity if not managed carefully. Current liabilities have remained stable around £9,000, suggesting manageable short-term obligations. Positive net current assets show sufficient working capital to meet immediate liabilities. No audit means cash flow details are limited; prudent cash management is recommended.

4. Monitoring Points:

• Liquidity trends, particularly cash and debtor collection efficiency.
• Operating performance given the pub industry’s exposure to economic downturns and regulatory changes.
• Changes in current liabilities that could pressure working capital.
• Any shifts in ownership or director changes given the small management team.
• Timely filing of accounts and returns to maintain compliance and transparency.