THE CULINARY CLINIC LTD

Executive Summary

THE CULINARY CLINIC LTD shows a declining financial position with negative net assets and working capital deficit as at the end of 2024. The company’s liquidity is constrained, and absence of employees suggests limited business activity, increasing credit risk. Without clear turnaround measures or capital support, extending credit is not advisable at present.

THE CULINARY CLINIC LTD - Analysis Report

Company Number: 13788884

Analysis Date: 2025-07-29 14:44 UTC

1. Credit Opinion: DECLINE
   THE CULINARY CLINIC LTD exhibits a deteriorating financial position with net liabilities as of the latest year-end 2024. The company moved from positive net assets (£265) in 2023 to negative net assets (-£2,209) in 2024, indicating erosion of financial base. The absence of employees and limited current assets relative to current liabilities raises concerns about its ability to meet short-term obligations. The company’s trading viability appears weak, and there is no indication of profitability or cash inflows sufficient to stabilize or improve financial health. Given these factors, the risk of default on any credit facility is high without significant improvement or external support.

2. Financial Strength:
   The balance sheet shows negative net current assets and net liabilities of £2,209 at 31 December 2024, down from a modest positive net asset position in prior years. Fixed assets are nil, indicating no long-term tangible assets to support lending risk. The company's equity base has eroded completely since incorporation, reflecting ongoing losses or withdrawals. The micro-entity classification limits the scale of operations and financial reporting detail, but trends clearly point to weakening financial stability.

3. Cash Flow Assessment:
   Current assets of £2,117 are insufficient to cover current liabilities of £4,326, resulting in a working capital deficit of £2,209. This signals liquidity constraints and potential cash flow difficulties. The company’s lack of employees suggests minimal operational activity or possible dormancy, which does not support ongoing cash inflows. Without clear evidence of cash generation or capital injection, the capacity to service debt or meet payment obligations is questionable.

4. Monitoring Points:

• Monitor quarterly cash flow statements and bank balances to assess liquidity status.
• Watch for any director or shareholder capital injections or restructuring efforts.
• Track any changes in operational activity or employee headcount indicating business revival.
• Review subsequent filings to detect improvements or further deterioration in net assets and working capital.
• Evaluate management actions and governance, especially given director resignation in 2024.