Company Number: 15042927

Analysis Date: 2025-07-29 20:16 UTC

1. Credit Opinion: DECLINE
   Scoff And Quaff Limited shows significant financial distress evidenced by net liabilities of £57,440 as of the latest accounts. The company’s current liabilities (£101,134) far exceed its current assets (£41,870), resulting in a negative working capital position of £59,264. This indicates an inability to meet short-term obligations without additional financing or capital injection. Given the company’s recent incorporation in 2023 and the lack of profitability or equity buffer, the risk of default on credit facilities is high. Management turnover mid-2025 may also signal instability. Based on current financials and limited operating history, credit approval is not recommended.

2. Financial Strength:
   The balance sheet reflects a weak financial position. Fixed assets are minimal at £1,824, with no significant investment in long-term assets. Current liabilities are dominated by taxation and social security payables (£93,225), suggesting potential cash flow management issues or tax arrears. The company’s negative shareholders’ funds point to accumulated losses or undercapitalization. The absence of retained earnings and a negative net asset position reduces cushion against trading setbacks or economic downturns.

3. Cash Flow Assessment:
   Cash on hand is £20,204, which covers only about 20% of current liabilities, insufficient to assure liquidity. Debtors (£21,666) may provide some short-term inflow, but the overall liquidity position is strained by the large creditor balances. Negative net current assets highlight working capital deficiency, increasing reliance on external funding or extended credit terms from suppliers. Since the company operates in the licensed restaurant sector (SIC 56101), cash flow can be seasonal and volatile, which amplifies risk.

4. Monitoring Points:

• Improvement in net current assets and reduction of current liabilities, especially tax obligations.
• Stabilization of management and governance following recent director changes.
• Evidence of positive cash flow generation and profitability in subsequent periods.
• Monitoring of trade creditor payment patterns and any overdue obligations.
• Review of any additional capital injections or financial support from shareholders.