THE TINY TAVERN LTD

Executive Summary

THE TINY TAVERN LTD exhibits improving financial health with growing net assets and cash balances, though working capital remains slightly negative, posing minor short-term liquidity risk. The company’s stable management and controlled scale support creditworthiness, but credit should be extended with conditions focused on liquidity monitoring and profitability maintenance. Overall, it is a cautiously viable credit candidate in a cyclical sector.

THE TINY TAVERN LTD - Analysis Report

Company Number: 12406290

Analysis Date: 2025-07-29 19:41 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   THE TINY TAVERN LTD shows modest but improving financial metrics with positive net assets and increasing cash balances. However, it has a slight working capital deficit (negative net current assets), indicating some short-term liquidity pressure. The business is relatively young (incorporated 2020) and small scale, operating as a public house, which is a sector sensitive to economic cycles and discretionary spending. Management appears stable with a single director and a significant controller. Credit can be extended with conditions requiring ongoing monitoring of liquidity and profitability to ensure the company maintains the ability to meet short-term obligations.

2. Financial Strength:
   The company’s net assets increased from £2,891 in 2023 to £3,329 in 2024, reflecting retained earnings growth and a stable equity base (£3,329 shareholders’ funds). Tangible fixed assets are modest (£4,120), representing investment in plant and fixtures. The company has no long-term liabilities disclosed, which supports financial stability. Deferred tax liability reduced slightly, indicating management’s tax planning is consistent. The low share capital (£100) is typical for small private companies but does not materially affect financial strength.

3. Cash Flow Assessment:
   Cash at bank nearly doubled from £4,213 to £8,251 year-on-year, which is a positive liquidity indicator. Yet current liabilities (£8,466) marginally exceed current assets (£8,251 cash + any receivables not disclosed), resulting in negative net current assets of £215. This slight working capital shortfall requires attention, as it could constrain the company’s ability to cover immediate payables without additional financing or improved cash conversion. The company’s average headcount is stable at 4 employees, indicating controlled operating expenses.

4. Monitoring Points:

• Working capital position: Monitor monthly cash flow and short-term liabilities to prevent liquidity stress.
• Profitability trends: Ensure continued growth in retained earnings to build equity and cushion downturns.
• Director loans: Small loans from directors present low risk but should be tracked.
• Sector risks: Monitor external economic factors impacting hospitality demand (consumer spending, regulatory changes).
• Filing compliance: Continued timely submission of accounts and confirmation statements maintains transparency and reduces regulatory risk.