THE BREW HUB (13) LIMITED

Executive Summary

The Brew Hub (13) Limited is a start-up in specialised food and beverage retail with positive working capital but net liabilities driven by long-term creditors and losses. While liquidity appears adequate for short-term obligations, credit approval is conditional on continued financial support from directors and close monitoring of cash flows and funding sources. The company’s financial trajectory requires cautious oversight given its early development stage and capital structure.

THE BREW HUB (13) LIMITED - Analysis Report

Company Number: 14262181

Analysis Date: 2025-07-29 15:16 UTC

Credit Opinion:
CONDITIONAL APPROVAL. The Brew Hub (13) Limited is a recently incorporated private limited company (established 2022) operating in the specialised retail sale of food and beverages. The company shows net liabilities on its balance sheet, primarily due to a significant long-term creditor balance of £60,000 and accumulated losses. However, current assets exceed current liabilities, providing positive working capital and some liquidity cushion. The company is still in its early stage, and while it has increased net current assets and deferred tax asset, the net liability position and reliance on external funding require ongoing monitoring. Approval should be conditional on continued director support and review of cash flow projections.

Financial Strength:

• Fixed assets stand at £12,195 (net book value), down from £14,321 last year, reflecting depreciation exceeding additions.
• Current assets have increased to £22,316 from £18,548, primarily driven by higher debtors and cash balances.
• Current liabilities rose to £12,801 from £10,654, but net current assets improved to £9,515 from £7,894, indicating a stronger short-term liquidity position.
• Long-term creditors increased to £60,000 from £50,000, contributing to overall net liabilities of -£38,290, worsening from -£27,785 last year.
• Accumulated losses (Profit & Loss account) have increased, showing ongoing losses since inception.
• Deferred tax asset of £9,767 reflects tax losses carried forward, providing potential future tax relief.
• Share capital is minimal (£100), typical for a small private company.

Cash Flow Assessment:

• Cash at bank and in hand is modest but stable around £4,700, slightly up from prior year.
• Trade debtors increased to £1,311, which is manageable relative to working capital.
• The company maintains positive net current assets, suggesting it can meet short-term obligations.
• However, the significant long-term creditor balance and accumulated losses raise concerns about the sustainability of funding.
• The company relies on director and creditor support to maintain going concern, as noted in accounting policies.

Monitoring Points:

1. Monitor ongoing cash flow and working capital management, particularly debtor collections and creditor payments.
2. Watch changes in long-term creditor balances and any new funding arrangements.
3. Track profitability trends and efforts to reduce accumulated losses.
4. Review any changes in director or shareholder support and their willingness to provide financial backing.
5. Ensure timely filing of accounts and confirmation statements to avoid regulatory penalties.