Company Number: 14720426

Analysis Date: 2025-07-20 16:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SHAPLA ST ALBANS LTD is a newly incorporated private limited company operating in the licensed restaurant sector. The company shows positive net current assets and cash balances but reports a net deficit in shareholders' funds due to long-term liabilities. The ability to service short-term obligations appears adequate given current assets exceed current liabilities; however, the negative net asset position signals reliance on external financing or shareholder support. Approval is conditional on continued monitoring of cash flows and profitability improvements as the business scales and repays long-term liabilities.

2. Financial Strength:
   The balance sheet reflects current assets of £14,063 primarily in cash (£11,649) and debtors (£2,414), against current liabilities of £1,080, generating strong net working capital of £12,983. However, the company carries non-current liabilities of £13,725 exceeding total assets less current liabilities, resulting in negative net assets of £742 and an equivalent negative shareholders’ funds figure. This indicates initial capital invested or loans have not yet translated into equity growth. The absence of share capital suggests funding has been via loans or similar instruments. The financial position is typical for a start-up but requires careful management to improve equity and reduce liabilities.

3. Cash Flow Assessment:
   Cash at bank is reasonably healthy for a company at this stage, providing liquidity buffer for operational needs. Net current assets are positive and considerably higher than current liabilities, indicating good short-term liquidity and working capital management. However, the company’s cash flow must accommodate repayment or refinancing of long-term liabilities of £13,725. Without detailed profit and loss data, it is unclear if internal cash generation suffices to cover these obligations; ongoing cash flow monitoring is critical.

4. Monitoring Points:

• Profitability trend and ability to generate positive earnings to build retained earnings and improve net asset position.
• Management of long-term liabilities and the timeline or plan for repayment or restructuring.
• Cash flow consistency and working capital cycle, especially given the restaurant industry's susceptibility to seasonal and economic fluctuations.
• Director actions and operational efficiencies as the sole controlling shareholder/director (Mr. Dudu Miah) will impact governance and financial discipline.
• Filing compliance remains good; ensure timely submission of next accounts and confirmation statements.