CUNNINGTONS LLP paid GBP 117k in interest on an operating loss of GBP 105k

CUNNINGTONS LLP, a UK limited liability partnership, reported revenue of GBP 5.6m for the year to the end of March 2026, down 4.3% from GBP 5.8m. The operating result moved from a profit of GBP 506k to a loss of GBP 105k. Interest expense was GBP 117k, so the partnership had no operating profit to cover it. Net profit of GBP 667k became a net loss of GBP 38.2k. Cash fell to GBP 484k from GBP 1.1m, a drop of 54.9%.

Interest cover falls when borrowing grows, when floating rates reset higher, or when operating profit drops while the debt stays. The accounts do not say which of these applies here. What they do show is that the interest bill was paid while cash shrank by GBP 589k, so the money did not come from trading. EBITDA, which adds back depreciation of GBP 69.5k, was still negative at GBP -35.9k. I would watch the cash line next: a reserve can carry interest for a year, rarely for two.