SPICE OF BANGAL LTD

Executive Summary

Spice of Bangal Ltd is a newly established micro-entity with a weak financial position characterized by negative net assets and a slight working capital deficit. The limited trading history and current liquidity constraints present a high credit risk, leading to a recommendation to decline credit facilities at this stage. Close monitoring of future financial improvements and cash flow generation is essential before reconsidering credit exposure.

SPICE OF BANGAL LTD - Analysis Report

Company Number: 15239085

Analysis Date: 2025-07-20 11:05 UTC

1. Credit Opinion: DECLINE
   Spice of Bangal Ltd is a newly incorporated micro-entity operating in the licensed restaurant sector, with minimal financial history and a weak balance sheet at the latest year-end. The company shows net current liabilities of £259 and negative net assets of £529, indicating insufficient working capital and a negative equity position. Given the early stage of the business, its negative net assets, and minimal current assets relative to liabilities, there is a heightened credit risk and limited evidence of financial resilience or cash flow strength to service debt. Approval for credit facilities is not recommended at this time without significant additional security or guarantees.

2. Financial Strength:
   The company’s financial position at 31 October 2024 shows total current assets of £6,545 against current liabilities of £6,804, resulting in a net current liability position of £259. Total net assets and shareholders’ funds stand negative at £529, reflecting accumulated losses or initial start-up expenses exceeding capital introduced. As a micro-entity newly trading with a small employee base (4 average employees), it lacks fixed assets and long-term resources. The negative equity and working capital deficit indicate a fragile financial base that is typical for start-ups but is a credit concern for lending.

3. Cash Flow Assessment:
   With current liabilities slightly exceeding current assets, the company has a working capital shortfall, suggesting potential liquidity constraints. No cash or cash equivalents data is provided explicitly, but the low current asset value relative to liabilities indicates tight cash flow. The business likely depends on ongoing cash inflows from operations or further capital injections to meet short-term obligations. The absence of historical profit and loss data further limits the ability to assess operating cash generation capacity.

4. Monitoring Points:

• Track improvements in net current assets and net asset position in subsequent accounts filings.
• Monitor cash flow statements once available to evaluate operating liquidity.
• Assess management’s ability to control costs and grow revenues in the licensed restaurant sector.
• Watch for any additional capital injections or shareholder loans that improve the balance sheet.
• Keep an eye on director conduct and credit history if further information becomes available.