Company Number: 13678544

Analysis Date: 2025-07-19 12:34 UTC

1. Risk Rating: HIGH
   Pub Decadence Ltd exhibits significant solvency concerns, with persistent and material net liabilities exceeding £17,500 across the last three reported financial years. The company’s negative net assets and working capital position indicate an inability to meet short-term obligations without external support.

2. Key Concerns:

• Persistent Negative Net Assets and Working Capital Deficit: The company’s net liabilities have remained stable but substantially negative (£-17,547 in 2023), suggesting ongoing financial distress with no clear evidence of improvement.
• Minimal Current Assets Against Substantial Current Liabilities: Current assets plummeted from £3,560 (2022) to £14 (2023) while current liabilities remain high (~£17,500), implying severe liquidity constraints and potential cash flow issues.
• No Employees and Limited Operational Activity: The average number of employees dropped to zero in 2023 from three in 2022, raising concerns about the company’s operational viability and ability to generate revenue or service debt.

3. Positive Indicators:

• Filing Compliance: The company is up to date with both its accounts and confirmation statement filings, with no overdue returns noted, indicating compliance with regulatory requirements.
• Single Director with Full Control: Serena Jane Hurst holds 75-100% share ownership and voting rights, which may facilitate swift decision-making and restructuring if necessary.
• Exemption from Audit: As a micro-entity, the company benefits from reduced regulatory burden, potentially lowering administrative costs.

4. Due Diligence Notes:

• Investigate the source and nature of the company’s liabilities and whether these are secured or subject to repayment demands imminently.
• Clarify the operational status and business model viability given the zero employee count and minimal current assets; ascertain if the business is trading or dormant in practice.
• Review any director loans, related party transactions, or capital injections that may not appear on the balance sheet but could impact solvency.
• Confirm absence of any ongoing or pending insolvency proceedings or creditor enforcement actions not reflected in the public filings.
• Assess the director’s plans or strategies to address the financial deficits and improve liquidity.