Company Number: 12840072

Analysis Date: 2025-07-20 11:54 UTC

1. Risk Rating: LOW

Azukar Baking Ltd demonstrates a stable and positive net current asset position, consistent shareholder equity growth, and timely compliance with filing requirements. The company’s financials and governance indicate low solvency and liquidity risk within its micro-sized operational context.

2. Key Concerns:

• Cash Position Decline: Cash has decreased from £4,184 in 2024 to £1,525 in 2025, signaling potential tightening of liquidity despite positive net current assets.
• Single Director and Employee: The company has only one director and one employee, which may raise concerns about operational resilience and governance depth.
• Limited Financial Disclosure: As a micro-entity filing exempt accounts, full profit and loss details are unavailable, limiting insight into operational profitability and cash flow dynamics.

3. Positive Indicators:

• Growing Shareholders’ Funds: Equity increased from £2,350 in 2024 to £3,459 in 2025, reflecting retained earnings accumulation.
• Positive Net Current Assets: The company consistently maintains net current assets approximately £3,459 in 2025, indicating it can cover short-term liabilities.
• Regulatory Compliance: Accounts and confirmation statements are filed on time, with no overdue filings or audit requirements, demonstrating good governance compliance.
• No Indications of Liquidation or Insolvency: The company remains active and not subject to liquidation or administration processes.

4. Due Diligence Notes:

• Investigate Cash Flow Dynamics: Review detailed cash flow statements or bank statements to understand cash depletion despite net asset growth.
• Assess Debtor Quality: £4,000 in trade debtors represent a significant portion of current assets; verify collectability and aging profile.
• Operational Viability: Confirm business sustainability given the single employee and director structure, including contingency planning and dependency risks.
• Director Background: Conduct background checks on the sole director for any adverse conduct or regulatory issues.
• Profitability Metrics: Obtain more detailed profit and loss data or management accounts to assess operational margins and cost structure.