Company Number: 14817846

Analysis Date: 2025-07-20 13:10 UTC

1. Credit Opinion: DECLINE

The company, THE JOLLY (CD) LIMITED, is a newly incorporated (2023) private limited company operating in the public houses and bars sector (SIC 56302). Despite being active and compliant with filing deadlines, the financial data indicates significant concerns. The balance sheet shows negative net assets of £183,805 due to long-term creditors exceeding total assets, indicating insolvency on a balance sheet basis. This weak equity position and high level of long-term liabilities undermine the company's ability to service debt or sustain credit facilities. The lack of profitability data and the micro-entity status limit visibility, but the current financial structure raises substantial credit risk. Without evidence of strong cash flow or additional capital injection, extending credit is not advisable.

2. Financial Strength:

• Fixed Assets: £294,940, representing a tangible asset base likely related to property or equipment.
• Current Assets: £53,804, modest liquidity.
• Current Liabilities (short-term creditors): £30,906, covered by current assets, yielding positive net current assets of £22,898, which suggests manageable short-term liquidity.
• However, long-term liabilities stand at £501,643, outweighing total assets and driving net liabilities of £183,805.
• Shareholders' funds are negative, indicating accumulated losses or capital deficits, which is a critical red flag.
• The company has 30 employees, which is on the high end for a micro-entity, potentially increasing fixed costs.

3. Cash Flow Assessment:

• Current assets exceed current liabilities, which is positive, but the overall negative net assets suggest the firm is relying heavily on long-term borrowing.
• No cash flow or profit and loss data is available, but the large creditor balance after one year implies material debt obligations that could strain cash flow.
• The company’s ability to generate operating cash flow sufficient to service these obligations is questionable without further financial disclosures.
• The company is newly established, so operating history is minimal, increasing uncertainty regarding cash flow stability.

4. Monitoring Points:

• Quarterly updates on cash flow and profitability to assess if operating revenues can cover debt service.
• Review any debt restructuring plans or capital injections aimed at improving solvency.
• Monitor payment patterns to suppliers and creditors for signs of financial stress.
• Watch for any changes in director appointments or significant control that might indicate operational adjustments.
• Check for any overdue filings or delays that could signal deteriorating governance or financial management.