Company Number: 13255698

Analysis Date: 2025-07-29 19:51 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   STEAK & HONOUR LIMITED is an active private limited company operating in the take-away food sector. The company shows improvement in financial health with positive net current assets and net assets growth in the latest year. However, it remains a relatively young business with limited financial history and moderate working capital. Approval is recommended with conditions that the company maintains or improves liquidity and profit margins, and provides updated financials periodically for review.

2. Financial Strength:
   The company’s net assets increased from £72,162 in 2023 to £96,500 in 2024, signaling capital growth and retained earnings accumulation (£96,499 in profit and loss reserves). Tangible fixed assets stand at £87,911, primarily motor vehicles and fixtures & fittings, indicating investment in operational capacity. The balance sheet shows a manageable level of long-term liabilities (£1,144) related to finance leases and modest loans from directors (£734). Deferred tax provisions are present but consistent with prior year. Overall, the balance sheet is improving and reflects a stable equity base for a small enterprise.

3. Cash Flow Assessment:
   Current assets rose to £127,733 with cash holdings at £54,213, down from £78,140 the prior year, but offset by increased trade debtors (£41,621 vs. £2,389). Current liabilities decreased from £123,598 to £102,452, resulting in a positive net current asset position of £25,281, a turnaround from a working capital deficit in 2023. The improvement in working capital suggests better short-term liquidity management, although monitoring debtor collections is essential given the significant increase. The company has a small finance lease obligation falling due within and beyond one year.

4. Monitoring Points:

• Debtor days and credit control effectiveness given the sharp rise in trade debtors.
• Cash flow trends to ensure sufficient liquidity to meet short-term obligations as cash decreased.
• Profitability and margin sustainability as the company grows and incurs fixed asset depreciation and finance lease costs.
• Any further director loans or increases in external financing.
• Timely submission of future financial statements and confirmation statements to monitor ongoing compliance and financial health.