Company Number: 14029133

Analysis Date: 2025-07-20 14:02 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity and solvency concerns as indicated by current liabilities vastly exceeding current assets, resulting in negative net current assets and negative net assets. This raises risk over the company’s ability to meet short-term obligations and maintain ongoing operations.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£92,205) greatly exceed current assets (£35,040) as of April 2024, indicating cash flow stress and potential difficulties in paying short-term debts.
• Negative Net Assets: The company’s net assets have worsened from -£14,742 in 2023 to -£23,197 in 2024, signaling erosion of shareholder equity and potential insolvency risk.
• Limited Financial History: Incorporated in April 2022 with only two full years of accounts, limiting ability to assess long-term operational stability and profitability trends.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement filings are up to date, indicating compliance with statutory requirements.
• Stable Employee Base: The company maintained an average of 9 employees over 2023 and 2024, suggesting some operational continuity.
• Increasing Fixed Assets: Fixed assets rose from £12,500 to £33,350, possibly reflecting investment in business infrastructure.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to understand maturity profiles and potential refinancing risks.
• Review cash flow statements and management accounts to assess liquidity management and operational cash generation.
• Assess the business model sustainability in the public houses and bars sector, including revenue streams and cost structure, given the negative net asset position.
• Confirm no director disqualifications or governance issues given the controlling shareholders have appointment/removal rights.
• Consider external market and sector risks impacting the company’s future viability.