Company Number: SC684427

Analysis Date: 2025-07-29 16:05 UTC

1. Credit Opinion: DECLINE
   Trattoria 47 Limited presents a weak credit profile with persistent net liabilities and negative working capital. The company has been in operation since late 2020 but has accumulated losses reflected in shareholders’ funds of approximately -£6,689 as at 31 December 2023. Current liabilities exceed current assets by £17,231, indicating liquidity stress and potential difficulty in meeting short-term obligations. Furthermore, the company relies heavily on director’s loans (£11,143 in 2023), which while supportive, are not a stable source of external funding. Given these factors, the company currently lacks the financial strength to support new credit facilities without significant conditions or guarantees.

2. Financial Strength:
   The balance sheet shows total fixed assets of £10,542, which are relatively modest. Current assets have fallen to £1,255 mostly tied up in stock (£1,145) and minimal cash (£110), while current liabilities remain high at £18,486. The persistent negative net assets position and declining shareholder funds indicate ongoing operating losses or insufficient capital injection. The company appears to be dependent on director loans to cover liabilities, reflecting weak equity and limited external financial resources. The absence of audit and limited disclosure reduces transparency but the data suggests financial fragility.

3. Cash Flow Assessment:
   Cash at the year-end is very low at £110, a sharp decline from £3,288 in the prior year, highlighting potential cash flow management issues or increased cash outflows. Negative net current assets of £17,231 imply working capital deficiency, meaning the company may struggle to cover short-term debts as they fall due. The small cash buffer and high reliance on director loans suggest liquidity risk and limited ability to absorb financial shocks or downturns. Without improvement in cash flow generation or external funding, operating continuity could be compromised.

4. Monitoring Points:

• Liquidity trends, especially cash balances and working capital position
• Movements in director loans and any repayments or new injections
• Profit and loss trends to evaluate if losses continue or improvements emerge
• Debtor and creditor ageing to identify payment delays or credit risk
• Any changes in fixed asset base or capital structure that affect solvency