SMASH PIZZA CO LIMITED

Executive Summary

Smash Pizza Co Limited demonstrates a high risk profile due to its deteriorating solvency position, negative net assets, and working capital deficits. While timely filings and increased cash balances provide some compliance and liquidity comfort, the lack of profitability data and growing liabilities raise significant concerns about the company’s financial sustainability. Further investigation into operational performance and creditor arrangements is essential before considering investment.

SMASH PIZZA CO LIMITED - Analysis Report

Company Number: 13099797

Analysis Date: 2025-07-20 14:58 UTC

1. Risk Rating: HIGH
   Justification: The company shows significant and increasing net liabilities and working capital deficits over the past two years. Current liabilities exceed current assets by £41,919 as of September 2023, and net assets are negative at £31,727, indicating financial distress and potential solvency issues.

2. Key Concerns:

• Solvency Risk: The company’s net liabilities have nearly doubled from £16,362 in 2022 to £31,727 in 2023, reflecting deteriorating financial health and insufficient equity to cover obligations.
• Liquidity Concerns: Negative net current assets (£41,919 deficit) indicate potential difficulties meeting short-term liabilities, with a high level of taxation and social security creditors (£85,426) suggesting possible cash flow strain.
• Operational Stability: Despite some increase in cash and assets, the company continues to operate at a loss (retained earnings negative and growing), and the absence of turnover or profit figures (not filed) limits transparency on business sustainability.

3. Positive Indicators:

• The company has maintained current filings and accounts submissions on time, indicating compliance with Companies House requirements.
• Cash at bank increased from £25,408 in 2022 to £45,727 in 2023, which could provide a short-term liquidity buffer.
• The business appears to be growing its employee base modestly (from 6 to 8 employees), suggesting ongoing operations and potential expansion.

4. Due Diligence Notes:

• Investigate the absence of an income statement and profit/loss data to understand revenue streams, profitability, and cash flow generation capacity.
• Review the nature and age of the tax and social security liabilities to assess any risk of enforcement action or penalties.
• Clarify the reason for the large increase in current liabilities and whether there is an agreed repayment plan with creditors.
• Assess the director’s plans or strategies to restore solvency and improve financial stability, including potential capital injections or restructuring.
• Examine any contingent liabilities or off-balance sheet commitments not disclosed.