Company Number: 15398440

Analysis Date: 2025-07-29 14:56 UTC

1. Risk Rating: HIGH
   The company shows significant negative net current assets and net liabilities at the balance sheet date. This indicates an immediate solvency concern despite being a recently incorporated micro-entity.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£59,321) exceed current assets (£6,457) by a large margin, resulting in net current liabilities of £52,864, which signals liquidity risk and potential cash flow difficulties.
• Negative Net Assets: Total net assets and shareholders’ funds are reported as –£46,862, indicating the company is technically insolvent at the reporting date.
• Short Operating History: Incorporated in January 2024 with accounts to December 2024, the company has less than one year of trading history, limiting visibility on operational sustainability and financial performance.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, which suggests management is maintaining compliance with statutory requirements.
• Ownership and Control Clarity: Single director and controlling shareholder (75-100% ownership by Mr. Nirojh Jeganathan) simplifies governance and accountability.
• Employee Base: Employing 4 staff in the first year may indicate initial operational activity consistent with the company’s SIC codes in licensed and food services.

4. Due Diligence Notes:

• Investigate the nature and cause of the excess current liabilities relative to current assets, including creditor terms, payment delays, or financing arrangements.
• Assess cash flow forecasts and funding plans to determine how the company intends to meet its short-term obligations given the reported deficit.
• Review contracts, licenses, and operational permits relevant to the licensed club and food services sector for any regulatory or compliance risks.
• Clarify whether any related party transactions or director loans impact the balance sheet position.
• Gather updated management commentary or forecasts beyond the micro-entity accounts to assess future viability.