Company Number: 13025558

Analysis Date: 2025-07-29 15:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Slizza Ltd is an active private limited company operating in the hospitality sector (public houses, licensed restaurants, take-away food shops). The company shows positive net assets increasing from £15,770 in 2023 to £35,345 in 2024, reflecting some growth and retained earnings accumulation. However, the company currently has a negative net working capital position (net current liabilities of £13,589 in 2024), indicating short-term liquidity pressure as current liabilities exceed current assets. The company holds a strong cash position (£78,199) which mitigates immediate liquidity risks but the high current liabilities, particularly taxation and other creditors, warrant monitoring. The directors have maintained timely filings and the business appears operationally stable with no signs of distress or insolvency. Given the sector’s sensitivity to economic cycles and the working capital strain, credit approval should be conditional on continued cash flow monitoring and potentially securing additional short-term liquidity support.

2. Financial Strength:
   The balance sheet shows steady improvement in net assets from £15,770 in 2023 to £35,345 in 2024, supported by tangible fixed assets growth (£53,443 in 2024 up from £47,668). Shareholders’ funds align with net assets, indicating no hidden liabilities. The company is investing in fixed assets, which may support operational capacity expansion. However, increasing current liabilities to £100,837 (2024) from £90,334 (2023) and a negative net working capital position highlight some short-term solvency concerns. The long-term liabilities have reduced (hire purchase contracts from £4,096 to £2,276), which is positive.

3. Cash Flow Assessment:
   Cash at bank has increased significantly from £56,318 in 2023 to £78,199 in 2024, which is a positive liquidity indicator. Debtors are relatively low (£9,049), suggesting efficient receivables management. Nevertheless, current liabilities exceed current assets, largely due to taxation and other creditors, implying working capital is tight. The company should maintain a focus on cash flow management to ensure obligations can be met as they fall due and avoid reliance on short-term financing.

4. Monitoring Points:

• Monitor net current liabilities and ensure these do not increase further.
• Track cash balances and working capital trends quarterly.
• Keep watch on taxation and social security creditor balances as they form a significant portion of current liabilities.
• Review any changes in the hospitality sector conditions that may impact trading performance.
• Confirm continued timely filing and absence of director misconduct or disqualification.