Company Number: 13244824

Analysis Date: 2025-07-29 15:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SBG Riverside Limited operates in the unlicensed restaurants and cafes sector and is a small private limited company incorporated in 2021. The company currently shows significant net liabilities (£-401,614 as of 30 November 2024) and a shareholders’ deficit that has deteriorated over the past years, indicating ongoing losses or accumulated deficits. However, net current assets have improved to £61,798, showing some working capital buffer. The company’s ability to service short-term obligations appears limited due to a large amount of non-current financial liabilities (£686,641), which includes loans and other borrowings. Given the continued negative net assets position and high long-term liabilities, credit approval should be conditional on obtaining further assurances such as personal guarantees, detailed cash flow forecasts, or evidence of an imminent turnaround in profitability.

2. Financial Strength:
   The balance sheet reveals tangible fixed assets of £223,229 and current assets of £101,758 (including £15,359 cash), offset by current liabilities of £39,960 and long-term financial liabilities of £686,641. The company has maintained a stable asset base but carries a substantial debt burden well in excess of its asset base, resulting in a net liability position. Although net current assets have improved since last year, the overall financial structure is weak with a negative equity position, which undermines financial resilience and increases risk exposure. The company’s capital base is minimal (£100 share capital), and retained losses are materially negative.

3. Cash Flow Assessment:
   Cash on hand is low (£15,359), and trade debtors (£72,753) represent the majority of current assets, indicating reliance on timely collections to meet obligations. The current liabilities are relatively low at £39,960, suggesting short-term liquidity is manageable at present. However, the sizeable long-term liabilities imply significant future cash outflows for debt servicing. The company’s average staff count has decreased (16 employees in 2024 from 21 in 2023), possibly reflecting cost-cutting measures. The director’s remuneration is modest (£4,792), which may help conserve cash. Nonetheless, without strong positive operating cash flows or external funding, liquidity risks remain elevated.

4. Monitoring Points:

• Monitor ongoing profitability and cash flow generation, especially ability to service debt interest and principal.
• Watch debtor aging and collection efficiency to prevent cash flow disruptions.
• Track changes in long-term borrowings and any restructuring efforts.
• Review any new capital injections or guarantees from controlling shareholder (SB Group Holdings Limited).
• Assess management’s operational performance and cost control effectiveness in the competitive hospitality sector.
• Confirm timely filing of accounts and confirmation statements to maintain compliance and transparency.