WAPPING TAVERNS LTD

Executive Summary

WAPPING TAVERNS LTD has demonstrated a solid financial recovery in the latest year, moving to positive net assets and improved working capital. While the company remains small and operationally limited, its improved balance sheet and liquidity position support conditional credit approval, contingent on continued monitoring of cash flow and creditor management. Close oversight is advised due to modest equity and concentration risk.

WAPPING TAVERNS LTD - Analysis Report

Company Number: 13537571

Analysis Date: 2025-07-20 16:40 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   WAPPING TAVERNS LTD shows a marked financial turnaround in the latest fiscal year ending September 2024, recovering from significant prior year losses. The company moved from negative net assets of £92,382 in 2023 to positive net assets of £37,176 in 2024, indicating improved solvency. However, current liabilities remain substantial (£251k) and working capital is modest (£21.6k), requiring continued close monitoring. Given the micro-entity scale, limited staff (average zero employees in 2024) and reliance on a single controlling director, there is some concentration risk and limited operational scale. Credit approval is recommended with conditions on maintaining liquidity and monitoring trading performance.

2. Financial Strength:
   The balance sheet reflects a recovery from prior years’ losses. Fixed assets remain stable at about £103k. Current assets increased significantly from £151k to £248k, driven by both cash/debtors and prepayments. Current liabilities reduced from £301k to £251k, improving net current assets from a negative £143k to positive £21.6k. Net assets improved accordingly to £37k. The modest positive equity base and improved working capital position indicate better financial stability but still constrained buffer to absorb shocks.

3. Cash Flow Assessment:
   Although cash specifics for 2024 are not fully detailed, the increase in current assets and prepayments suggests some cash inflow improvement. The positive working capital implies the company can meet short-term obligations, but the narrow margin (£21.6k) over current liabilities limits liquidity flexibility. The absence of employees and low operational scale may reduce cash burn, but cash flow forecasting and management will be critical to ensure ongoing debt servicing capacity.

4. Monitoring Points:

• Maintain or improve the net current assets and cash balances to strengthen liquidity.
• Monitor accounts payable and creditor days to avoid working capital strain.
• Watch profitability trends and cash flow generation as they relate to servicing any credit facilities.
• Track director’s involvement and any operational changes given the reliance on a single controlling individual.
• Review compliance with filing deadlines and transparency in financial disclosures.