Company Number: 14124531

Analysis Date: 2025-07-20 15:56 UTC

1. Risk Rating: MEDIUM
   Atlantis Kettering Limited shows a modest net asset position with shareholders' funds increasing from £825 to £2,957 over the last reported year. However, persistent negative net current assets and significant director loan liabilities present moderate solvency and liquidity concerns. The company is relatively new (incorporated 2022) and operates in a competitive, low-margin sector (unlicensed cafes), which requires close monitoring of operational stability.

2. Key Concerns:

• Negative Net Current Assets: The company reports negative working capital (£-415 in 2024), indicating current liabilities exceed current assets, which can strain short-term liquidity.
• High Director Loan Liability: £40,000 classified as long-term director loan account is a material liability, raising questions about the company’s reliance on director funding and potential repayment capacity.
• Limited Equity Base: Shareholders’ funds are low (£2,957), suggesting minimal buffer against financial shocks and limited retained earnings despite some improvement in the latest year.

3. Positive Indicators:

• Improving Net Assets: The net asset position has grown steadily from £825 to £2,957, indicating some accumulation of retained profits or reduction in losses.
• Stable Fixed Assets: Tangible and intangible fixed assets remain consistent, reflecting some investment in operational capacity and goodwill, which may support ongoing business activities.
• Compliance with Filing Requirements: The company is active, with no overdue accounts or confirmation statements, suggesting good regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Director Loan Terms: Investigate the terms, interest rates, and repayment plan for the £40,000 director loan to assess impact on future cash flows and solvency.
• Cash Flow and Profitability Trends: Review detailed profit and loss accounts (not filed publicly here) to understand operational cash flows, margins, and earnings sustainability in a challenging sector.
• Trading Performance and Customer Concentration: Assess revenue drivers, customer base diversity, and contract stability to evaluate operational risk and growth prospects.
• Related Party Transactions: £2,300 debt owed by related companies requires scrutiny to confirm collectability and potential intra-group risk.