Company Number: 13441969

Analysis Date: 2025-07-29 20:24 UTC

1. Risk Rating: MEDIUM

The Harry 2021 Limited exhibits modest net current assets and shareholder funds typical of a micro-entity operating in the hospitality sector. While the company is solvent on a balance sheet basis, shrinking net current assets over recent years and director loans indicate moderate financial strain, warranting cautious monitoring.

2. Key Concerns:

• Declining Net Current Assets: Net current assets have decreased from £24,453 in 2021 to £10,601 in 2024, suggesting reduced short-term financial buffer and potential liquidity pressures.
• Director Advances: The company shows a significant director loan balance (£20,878 at 2024 year-end), reflecting reliance on director funding which may pose risks if not repaid or regularized.
• Limited Operating Scale: Average employees reduced from 4 to 3, combined with micro-entity status and low capital base (£1 share capital), indicating limited operational scale and possible vulnerability to market disruptions.

3. Positive Indicators:

• Timely Filings and Compliance: No overdue accounts or confirmation statements; compliance with filing deadlines reduces regulatory risk.
• Positive Shareholders’ Funds: Despite declines, shareholders’ funds remain positive at £10,601, indicating book solvency.
• Single Shareholder Control: Control by a single director with 75-100% ownership simplifies governance and decision-making.

4. Due Diligence Notes:

• Verify the nature and terms of director loans: Are they documented, interest-bearing, and what is the repayment plan?
• Review cash flow statements (not provided) to assess operational liquidity and ability to meet short-term obligations.
• Investigate reasons behind declining net current assets and headcount reduction, including business performance and market conditions.
• Confirm if the company has adequate insurance, licenses, and compliance measures for operating public houses and bars (SIC 56302).