Company Number: 14226033

Analysis Date: 2025-07-20 11:23 UTC

1. Risk Rating: HIGH
   The company shows significant negative net assets (£-25,232) and net current liabilities (£-5,706) as of the latest financial year, indicating solvency and liquidity challenges. The presence of substantial long-term bank loans (£23,645) relative to modest assets further heightens financial risk.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s equity position has deteriorated from positive in previous years to a significant deficit, suggesting accumulated losses and erosion of capital.
• Liquidity Deficit: Current liabilities (£15,207) substantially exceed current assets (£9,501), resulting in negative working capital, which may impair the company’s ability to meet short-term obligations.
• High Debt Burden: Long-term bank loans of £23,645 present a material financial obligation for a small company with limited tangible assets (£4,119) and cash reserves (£4,703), increasing solvency risk if cash flows do not improve.

3. Positive Indicators:

• Timely Compliance: The company is up to date with both accounts and confirmation statement filings, indicating good regulatory compliance and governance practices.
• Established Management: Directors and significant shareholders are clearly identified, all residing at the registered address, which may suggest close involvement and oversight.
• Business Scale: The company employs an average of 9 staff, indicating operational activity beyond a micro-entity level, which can be a foundation for revenue generation and growth.

4. Due Diligence Notes:

• Review cash flow forecasts and recent trading performance to assess operational sustainability and ability to service debt.
• Investigate the nature and terms of bank loans, including covenants and repayment schedules, to understand refinancing or default risk.
• Assess reasons for rapid deterioration in net assets within two years, including any exceptional losses or one-off expenses.
• Confirm the completeness of financial data and whether any contingent liabilities exist beyond those disclosed.
• Evaluate the business model and market conditions for the public houses and bars sector, particularly post-pandemic trading environment.