Company Number: 13868638

Analysis Date: 2025-07-20 18:34 UTC

1. Risk Rating: HIGH
   The company shows persistent negative shareholders’ funds and net liabilities, indicating solvency issues. The large amount of long-term creditors (£129,000) compared to minimal current assets (£3,485) signals potential liquidity problems. The business is relatively new and operating in a competitive sector with limited financial cushion.

2. Key Concerns:

• Negative Net Assets: Net liabilities of £77,585 as of 31 January 2025, worsening from prior years, suggesting solvency risk.
• High Long-Term Creditors: £129,000 due beyond one year with minimal current assets raises concerns about meeting obligations without refinancing or capital injection.
• Persistently Low Cash and Working Capital: Cash of only £1,765 and net current assets of £4,307 in 2025 despite 15 employees implies tight operating cash flow and potential liquidity strain.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with statutory requirements.
• Active Operations: The company is active with 15 employees, showing ongoing business activity in the unlicensed restaurant sector.
• Stable Tangible Fixed Assets: Fixed assets of £47,108 suggest some investment in operational infrastructure, potentially supporting business continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of the £129,000 long-term creditors to assess repayment schedules, interest obligations, and refinancing risk.
• Review detailed cash flow statements and management accounts to understand operating cash flow sufficiency and working capital management.
• Assess profitability trends and business model sustainability given the negative retained earnings and accumulated losses.
• Confirm the identity and relationship of significant controllers (Mr Ibrahim Ismail Badat and Goleen Investments Ltd) and their intentions regarding financial support or capital infusion.
• Examine any contingent liabilities or off-balance sheet obligations not reflected in the accounts.