SAMBOLA LIMITED

Executive Summary

Sambola Limited is a micro-entity start-up in the unlicensed restaurant sector with limited financial history and modest net assets. While currently solvent with positive working capital, its scale and short trading record warrant conditional credit approval subject to ongoing financial performance and liquidity monitoring. Careful observation of future filings and cash flow generation is essential to confirm repayment capacity.

SAMBOLA LIMITED - Analysis Report

Company Number: 14682686

Analysis Date: 2025-07-20 15:09 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Sambola Limited is a newly incorporated micro private limited company operating in the unlicensed restaurant and café sector. With only one financial year filed and minimal asset base (£1,282 net assets), its credit profile is limited by its short trading history and small scale. However, the company is active, compliant with filing deadlines, and shows positive net current assets indicating initial working capital adequacy. Approval is recommended with conditions such as ongoing monitoring of trading performance, cash flow, and timely filing of accounts to establish financial stability and repayment capacity over time.

2. Financial Strength:
   The balance sheet depicts a very modest financial position consistent with a micro-entity start-up: total current assets of £2,084 mainly cash or receivables, against current liabilities of £802, yielding net current assets of £1,282. No long-term liabilities or fixed assets are reported. Shareholders’ funds equal net assets, reflecting no external debt. The absence of employees and limited asset base imply low operating scale and risk of vulnerability to cash flow fluctuations or unexpected expenses. Financial strength is weak but typical for a start-up in this sector.

3. Cash Flow Assessment:
   Working capital is positive but minimal, suggesting some liquidity cushion to meet short-term obligations. The company’s ability to generate operating cash flow is unproven given zero employees and start-up status. No information on turnover, profitability, or cash flow statements is available from the micro-entity accounts. Cash flow risk remains due to limited financial history and small capital base, emphasizing the need to assess future trading results and cash inflows carefully before extending credit.

4. Monitoring Points:

• Timely submission of subsequent annual accounts to monitor financial progression.
• Growth in current assets and net assets indicating improved capitalisation.
• Evidence of operating revenue and profit generation to support debt servicing.
• Liquidity ratios (current ratio, quick ratio) improvements.
• Changes in director or ownership structure that may impact governance or risk.
• Sector-specific risks given the hospitality industry’s sensitivity to economic cycles and regulatory changes.