Company Number: 14357741

Analysis Date: 2025-07-29 18:25 UTC

1. Credit Opinion: DECLINE. Taylor and Taylor Pub Ltd shows significant financial distress with negative net assets (£-9,390) only two years after incorporation. The company has a substantial working capital deficit (£-37,769) indicating liquidity issues, and a high level of creditors both short term (£62,590) and long term (£57,121) relative to assets. The directors have not provided a profit and loss account, which limits insight into operating performance, but the balance sheet suggests the company is heavily reliant on creditor funding with insufficient equity. Given this weak financial position and liquidity risk, the company’s ability to service debt obligations currently appears inadequate.

2. Financial Strength: The balance sheet reveals a modest asset base totaling £110,321 (fixed assets plus current assets) against total liabilities of £119,711, resulting in negative net assets. The fixed assets consist mainly of leasehold land/buildings and plant & machinery (£63,000 tangible, £22,500 intangible goodwill). The company’s equity base is minimal and negative after accumulated losses. The high level of creditors falling due within one year and beyond indicates reliance on external funding rather than internal capital. Overall, the financial strength is weak, with limited buffer against adverse events.

3. Cash Flow Assessment: Cash at hand is low (£5,558) relative to current liabilities (£62,590), resulting in a large negative net current asset position (£-37,769). Debtors (£15,000) form a significant part of current assets but may not be readily convertible to cash quickly. The working capital deficit suggests potential short-term liquidity constraints and challenges in meeting immediate obligations without additional financing or cash inflows. The absence of an audit and no profit and loss statement disclosure increases uncertainty about cash flow generation capacity.

4. Monitoring Points:

• Net current assets: watch for improvement or further deterioration in working capital.
• Creditors profile: monitor outstanding trade creditors and other liabilities for signs of payment delays.
• Cash balances: track cash generation and reserves for liquidity sufficiency.
• Profitability and operating cash flow once future accounts are available.
• Any new capital injections or refinancing to improve solvency.
• Director actions on cost control and debtor collection efficiency.