SALMON BARS LIMITED

Credit Opinion: DECLINE Reasoning: The company is currently under a "Proposal to Strike off" at Companies House, indicating imminent dissolution. Extending credit to an entity in the process of being struck off presents an unacceptable risk of non-payment, as the company will shortly cease to exist as a legal entity. Furthermore, the company is technically insolvent with persistent negative net assets, has zero employees, and has an overdue confirmation statement, pointing to severe governance and operational failures.

Financial Strength: The balance sheet is fundamentally weak and technically insolvent. While the financial history summary provided states net assets of £24,345 for 2024 and 2025, the detailed balance sheet text reveals this figure is actually negative: (£24,345). Total liabilities (£180,421 when combining current, long-term, and accruals) significantly exceed total assets (£156,076). The company has been in a negative equity position for the majority of its life since 2018, demonstrating a chronic inability to build shareholder value. The only equity buffer is a mere £100 in share capital.

Cash Flow Assessment: Liquidity appears superficially adequate on a current basis, with net current assets of £50,285 (Current Assets £134,063 vs Current Liabilities £83,778). However, this working capital is completely eclipsed by long-term creditors (£95,098). More critically, the company reports zero employees for both 2024 and 2025. For a business classified under SIC code 56302 (Public houses and bars), zero staff strongly suggests the venue is either dormant, sublet informally, or operated solely by unpaid owner-managers. Without a profit and loss statement, it is impossible to assess operational cash generation, but the stagnant balance sheet over multiple years suggests minimal trading activity or cash flow generation.

Monitoring Points: - Strike-off Status: The most critical issue. Monitor the Companies House register daily to see if the strike-off is suspended or if the company is dissolved. Any credit extended will be written off upon dissolution. - Overdue Confirmation Statement: The confirmation statement is overdue (was due 2026-03-13 but flagged as overdue). This is a compliance failure and a common precursor to compulsory strike-off by the Registrar. - Director Resignations: Abdul Hayi Chowdhury resigned as a director on 2025-11-03. Despite this, he remains the majority shareholder (>75%). Understand why operational control has been relinquished and who is currently managing the business. - Asset Quality: If the strike-off is suspended and credit consideration resumes, the nature of the £134k in current assets and the £95k in long-term creditors must be verified. Given zero employees, these likely represent director loans or related-party balances rather than genuine trade activity.