YORKSHIRE FRIED CHICKEN (HALIFAX) LTD

Executive Summary

YORKSHIRE FRIED CHICKEN (HALIFAX) LTD currently exhibits financial weakness characterized by negative net assets and a negative working capital position, raising significant concerns about its ability to meet liabilities. Although fixed asset investment has increased, the company’s long-term debt burden and liquidity pressures limit its creditworthiness. Without clear evidence of improved cash flow or debt restructuring, credit facilities are not recommended at this time.

YORKSHIRE FRIED CHICKEN (HALIFAX) LTD - Analysis Report

Company Number: 12882906

Analysis Date: 2025-07-20 17:50 UTC

1. Credit Opinion: DECLINE
   YORKSHIRE FRIED CHICKEN (HALIFAX) LTD demonstrates a weak financial position with net liabilities of £3,740 as of the latest accounts (2024). The significant long-term liabilities exceeding total assets indicate potential solvency concerns. Despite some growth in fixed assets, the company’s capital structure is under strain, and working capital is negative, which raises doubts about its ability to meet short-term obligations and service additional debt without further financial support.

2. Financial Strength:
   The balance sheet shows total fixed assets increased from £13,071 in 2023 to £28,352 in 2024, indicating investment in long-term assets. However, current assets declined from £11,590 to £7,942, while current liabilities remained roughly stable, resulting in a negative net current assets position of £2,198 in 2024 (previously positive). More critically, the company carries £29,894 in creditors due after more than one year, which is substantially higher than the total assets less current liabilities (£26,154). This results in negative net assets and shareholders’ funds, reflecting an erosion of equity and weak financial strength.

3. Cash Flow Assessment:
   The negative net current assets position signifies potential liquidity challenges. With current liabilities exceeding current assets, the company may struggle to cover short-term debts from operational cash flow. The average number of employees remained stable at 4, indicating no immediate cost-cutting. Without detailed cash flow statements, it's difficult to fully assess, but the balance sheet suggests limited working capital and pressure on liquidity, increasing the risk of payment delays or default.

4. Monitoring Points:

• Monitor movements in long-term liabilities and whether the company manages to reduce or restructure these debts to improve solvency.
• Track improvements or further deterioration in net current assets and liquidity ratios.
• Observe cash flow generation from operations to ensure ongoing ability to cover short-term obligations.
• Review future filings for any changes in director conduct or disclosures that may impact creditworthiness.
• Watch for any capital injections or refinancing efforts to bolster equity and working capital.