Company Number: 12835555

Analysis Date: 2025-07-20 14:50 UTC

1. Risk Rating: MEDIUM
   The company shows ongoing operations with modest growth in net assets but persistent negative net current assets, indicating liquidity strain. The small scale and limited equity base also contribute to risk.

2. Key Concerns:

• Negative net current assets for multiple years (-£8,616 in 2024), suggesting potential short-term liquidity difficulties to meet current liabilities.
• Low cash balance (£5,011) relative to current liabilities (£47,046) raises concern over immediate cash flow sufficiency.
• Concentrated ownership and management: four individuals each controlling 25-50% shareholding and voting rights, which could pose governance risks or limit strategic flexibility.

3. Positive Indicators:

• Improvement in shareholders’ funds from £949 (2023) to £16,322 (2024) demonstrates some strengthening in net worth.
• No overdue filings for accounts or confirmation statements, indicating regulatory compliance and up-to-date company records.
• The company is operating within a stable industry segment (unlicensed restaurants and cafes), with a modest employee base (approx. 10), which may facilitate manageable operational costs.

4. Due Diligence Notes:

• Examine cash flow statements (not provided) to assess operational cash generation and working capital management.
• Review details of creditors and payment terms, especially "Other creditors" (£32,624), to understand obligations and potential payment pressure.
• Investigate the impact of fixed assets depreciation policy and recent asset additions on financial stability.
• Clarify governance arrangements given the overlapping roles of PSCs and directors, including the brief appointment and resignation of one director in 2024.