Company Number: 14780966

Analysis Date: 2025-07-29 18:59 UTC

1. Credit Opinion: DECLINE
   Red Robin SA Ltd is a newly incorporated entity with its first financial year just ended. The company’s financials reveal a negative net asset position (£-225) and significant net current liabilities (£-122,207), indicating strained short-term liquidity. The large bank loan (£216,981) due after one year further burdens the balance sheet with considerable debt. The negative shareholders’ funds and working capital deficit show a weak financial base, and there is no profitability or cash flow data to suggest immediate improvement. Given these factors, the company currently lacks the financial strength and cash flow stability to service new credit without additional security or guarantees.

2. Financial Strength:

• Fixed assets of £338,963 comprise the majority of total assets, representing land/property, which provides some tangible collateral.
• Current assets are minimal (£1,368), with very low cash (£724) and debtors (£644), insufficient to cover current liabilities of £123,575.
• The large bank loan of £216,981 due beyond one year indicates reliance on external financing and gearing risk.
• Negative net assets and shareholders’ funds reflect accumulated losses or initial start-up costs not yet offset by profits.
• Overall, the balance sheet is fragile with an overleveraged position and poor liquidity.

3. Cash Flow Assessment:

• Current liabilities exceed current assets by a large margin, signaling working capital deficiency and potential cash flow stress.
• Cash at bank is negligible relative to short-term obligations, raising concerns about the company’s ability to meet immediate payments.
• Debtor balances are low, suggesting limited revenue or slow customer acquisition in the first year.
• Absence of turnover or profit figures precludes positive cash flow assumptions.
• The company’s ability to generate operational cash flow sufficient to service debt or fund growth is currently uncertain.

4. Monitoring Points:

• Improvement in net current assets and liquidity ratios (current ratio, quick ratio) to reduce working capital strain.
• Progress in generating positive operating cash flows and turnover growth.
• Management of debt levels, particularly bank loans, to ensure sustainable leverage.
• Timely filing of accounts and confirmation statements to maintain compliance and transparency.
• Any changes in director/shareholder structure or additional capital injections that could strengthen equity.