Company Number: 14519166

Analysis Date: 2025-07-20 17:07 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and growing net current assets in the latest year, indicating improved solvency. However, the small scale of operations, limited cash reserves, and relatively high current liabilities for a young company in a competitive sector suggest moderate risk.

2. Key Concerns:

• Low Cash Reserves: Cash at bank is only £1,367 at year end 2024, which may constrain liquidity and operational flexibility, especially in a cash-intensive hospitality sector.
• High Current Liabilities: Although reduced from prior year, current liabilities (£19,273) remain significant relative to cash, indicating possible short-term liquidity pressure.
• Business Scale and Age: Incorporated in December 2022, with modest fixed assets (£2,668) and modest turnover (not disclosed but implied small), the company is in early development stages and may face typical startup risks.

3. Positive Indicators:

• Improved Financial Position: Net current assets improved from a negative £14,530 in 2023 to a positive £9,744 in 2024, reflecting better working capital management or increased receivables.
• Positive Net Assets and Shareholders’ Funds: The company moved from net liabilities to net assets of £12,412, indicating successful capitalisation or retained earnings.
• No Overdue Filings: Accounts and confirmation statements are up to date, showing regulatory compliance and good governance discipline.

4. Due Diligence Notes:

• Verify turnover and profitability trends, as turnover figures are not provided in the accounts summary.
• Investigate the nature and collectability of debtors (£27,650) which form the bulk of current assets; high debtor balances could pose cash conversion risks.
• Review cash flow statements and management plans to ensure the company can meet short-term obligations and fund ongoing operations.
• Confirm director and shareholder backgrounds for any risks not apparent from filings, especially given the entrepreneurial nature of the director.
• Assess market position and competitive strategy in the unlicensed restaurant sector (SIC 56102) to understand sustainability.