SBG RIVERSIDE LIMITED

Executive Summary

SBG Riverside Limited is a small, relatively young company in the unlicensed restaurant sector with significant negative net assets and a large debt load. While it maintains positive net current assets and stable fixed assets, its financial position is weakened by accumulated losses and high long-term liabilities. Credit approval is conditional pending further assurances due to liquidity concerns and the need for improved financial resilience. Close monitoring of cash flows, debt servicing, and operational performance is recommended.

SBG RIVERSIDE LIMITED - Analysis Report

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.