Company Number: 13146045

Analysis Date: 2025-07-20 17:09 UTC

1. Risk Rating: HIGH
   Simplystay 101 Limited exhibits significant solvency risk as evidenced by consistent and growing net liabilities, with shareholders' funds deeply negative at -£54,125 in the latest year. The company’s current liabilities substantially exceed current assets, indicating critical liquidity constraints.

2. Key Concerns:

• Negative Net Assets & Shareholders’ Funds: The company’s net liabilities have worsened from -£1,659 in 2023 to -£54,125 in 2024, reflecting accumulated losses and erosion of equity capital.
• Liquidity Shortfall: Current liabilities (£147,817) exceed current assets (£93,692) by over £54k, indicating insufficient short-term resources to cover immediate obligations.
• Reliance on Debtors and Director’s Loan: The current assets are almost entirely debtors (£93,692) and a small director’s loan (£81), raising concerns about cash conversion and the quality of receivables.

3. Positive Indicators:

• Active Status and Timely Filings: The company is active and has filed accounts and confirmation statements on time, indicating compliance with statutory obligations and no regulatory filing concerns.
• Growing Employee Base: Increase in average employees from 1 to 6 suggests business activity growth or operational scaling.
• Industry Sector: Operating in the hospitality sector (SIC 55100) with an active website and apparent market presence could offer upside if financial issues are managed.

4. Due Diligence Notes:

• Investigate the nature and collectability of the high trade debtors balance to assess liquidity risk more precisely.
• Review cash flow statements (not provided) to understand operational cash generation and working capital management.
• Examine the terms and conditions of bank loans and credit facilities (£115k bank loans and £29k credit card) for refinancing risk and covenant compliance.
• Evaluate the business model’s sustainability given the negative equity and whether capital injections or restructuring plans exist.
• Confirm no undisclosed director or related party transactions beyond the disclosed director loan.