ITALIAN COFFEE PIZZERIA LTD

Executive Summary

Italian Coffee Pizzeria Ltd is a small, early-stage company showing modest growth in net assets and liquidity. While current financial strength and cash flow are limited, management appears stable and compliant with filing requirements. Credit approval should be conditional with conservative limits and careful ongoing monitoring of financial performance and liquidity.

ITALIAN COFFEE PIZZERIA LTD - Analysis Report

Company Number: 13250251

Analysis Date: 2025-07-20 16:29 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Italian Coffee Pizzeria Ltd is a recently incorporated small private limited company with minimal financial history but shows modest growth in net assets and working capital. Its current financial position reflects very limited scale and operational capacity. The company’s ability to service new or increasing debt is constrained by its low asset base (£95 net assets) and very limited cash reserves (£511). However, no overdue filings or administration issues are noted, and the sole director has full control, suggesting stable management oversight. Credit extension should be cautious, with limits on exposure and conditions for monitoring financial performance closely.

2. Financial Strength:
   The balance sheet is extremely modest, with net assets of £95 as of 31 March 2024, up from £10 the prior year, indicating some accumulation of retained earnings or profits. Current assets (£511) slightly exceed current liabilities (£416), producing a positive net working capital of £95. The share capital remains nominal (£10). The company employs 4 people, which is within the micro to small enterprise scale. The company’s asset base is predominantly cash, with no fixed assets reported, showing limited capital investment. Overall, the financial strength is weak but stable, consistent with an early-stage SME.

3. Cash Flow Assessment:
   Cash balances have increased from £10 to £511 over the latest financial year, reflecting some improvement in liquidity. Current liabilities are low (£416), so the company maintains a positive but very narrow liquidity buffer. There is no evidence of significant borrowings or credit lines, and the company’s cash flow generation capacity remains uncertain due to lack of detailed income or cash flow statements. Working capital is positive but minimal, suggesting limited room for financial shocks or downturns.

4. Monitoring Points:

• Continued growth in net assets and cash balances to build a stronger liquidity cushion.
• Timely filing of annual accounts and returns to avoid compliance risks.
• Profitability trends once full accounts including income statements become available.
• Management of debt levels if credit facilities are extended; avoid over-leverage given small equity base.
• Impact of external economic conditions on the hospitality sector (unlicensed restaurants and cafes).
• Any changes in ownership or directorship to assess governance continuity.