Company Number: 14250288

Analysis Date: 2025-07-29 20:42 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net current liabilities and net assets deeply negative and worsening year-on-year. The high level of director loans as short-term creditors further complicates the financial stability.

2. Key Concerns:

• Severe Negative Net Assets and Working Capital: Net assets deteriorated from -£5,002 in 2023 to -£30,248 in 2024; net current liabilities worsened from -£35,002 to -£54,248, indicating inability to cover short-term obligations with current assets.
• High Reliance on Director Loans: £29,945 of current liabilities in 2024 are loans from directors, signifying dependence on insider funding to meet liabilities, which may not be sustainable or secure.
• Loss Accumulation and Operational Sustainability: The retained losses have increased substantially, and the company reported no profits, raising concerns about ongoing operational viability in the licensed restaurant sector, a high-risk industry especially for a young company incorporated in 2022.

3. Positive Indicators:

• Compliance and Timely Filings: The company is current with its accounts and confirmation statement filings, demonstrating regulatory compliance and governance diligence.
• Stable Employee Base: Maintains a consistent average of 4 employees, suggesting some operational continuity.
• Tangible Fixed Assets Presence: Possession of £24,000 in net tangible assets (plant and machinery) provides some collateral value.

4. Due Diligence Notes:

• Investigate the terms and repayment schedules of director loans to assess risk of calls or withdrawals.
• Review cash flow statements and management accounts to understand liquidity management and revenue generation, since cash on hand is minimal (£550).
• Understand the business model and market positioning in the licensed restaurant sector to evaluate prospects for turnaround or growth.
• Assess any contingent liabilities or related party transactions not disclosed in the accounts.
• Confirm no outstanding regulatory or legal issues given the company’s recent formation and financial losses.