Company Number: 14535092

Analysis Date: 2025-07-20 12:54 UTC

1. Risk Rating: MEDIUM
   The company shows signs of early-stage financial strain, particularly due to net current liabilities and significant long-term creditors compared to modest equity. However, it is a newly incorporated micro-entity with no overdue filings, which slightly mitigates immediate concerns.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£19,726) exceed current assets (£53,280) only if including the "Creditors amounts falling due after one year" (£60,133). However, the balance sheet separates short and long-term creditors, so current assets (£53,280) vs current liabilities (£19,726) actually indicates positive net current assets of £33,554. But note that total liabilities (including long-term £60,133) are substantial relative to shareholders' funds (£10,742), indicating leverage and solvency risk.
• High Long-Term Creditors: £60,133 in creditors due after one year is high relative to total equity, possibly indicating debt financing or payment obligations that may stress cash flow.
• Limited Financial History and Scale: As a company incorporated in late 2022 and classified as micro, there is limited financial history and scale, which heightens operational risk and uncertainty about long-term sustainability.

3. Positive Indicators:

• Timely Compliance: No overdue filings for accounts or confirmation statements, suggesting good governance and regulatory compliance.
• Ownership and Control Concentrated: Single director and 75-100% shareholder Peter Mclaren Smith, indicating centralized decision-making and clear accountability.
• Micro-Entity Classification: Lower regulatory and audit burdens reduce operational overheads, beneficial for an early-stage or small business.

4. Due Diligence Notes:

• Clarify Nature and Terms of Long-Term Creditors: Investigate creditor composition, repayment schedules, and interest obligations to assess solvency risk.
• Review Cash Flow Statements: Obtain cash flow data to confirm liquidity position beyond balance sheet snapshot.
• Assess Business Model and Market Position: Given the SIC code 56302 (public houses and bars), verify trading performance, customer base, and impact of sector-specific risks (e.g., hospitality sector volatility).
• Check Director Background and Related Party Transactions: Confirm no conflicts of interest or related party debts that could affect financial stability.