Company Number: 13300439

Analysis Date: 2025-07-19 12:14 UTC

1. Risk Rating: MEDIUM
   The company shows modest positive net current assets and net assets as of the latest financial year, indicating some short-term solvency. However, net assets are low (£1,961) and have fluctuated significantly from a negative position in the prior reported year. The small scale and limited capital base pose some risk to operational stability.

2. Key Concerns:

• Low Equity Base: Shareholders’ funds stand at only £1,961, signaling minimal capital buffer against losses or unexpected expenses.
• Long-term Creditors: Significant amounts (£6,975) due after one year could strain cash flow if not carefully managed.
• Fluctuating Financial Position: The company moved from net liabilities in the previous year (-£7,827) to a small net asset position, indicating volatility and potential instability in financial performance.

3. Positive Indicators:

• Positive Working Capital: Net current assets improved to £8,936, suggesting the company can currently cover short-term obligations.
• Compliance: No overdue filings; accounts and confirmation statement are up to date, reflecting good regulatory adherence.
• Stable Employment: The average number of employees remained constant at two, indicating operational continuity.

4. Due Diligence Notes:

• Review detailed cash flow and profit & loss information (not provided) to assess revenue trends and profitability.
• Investigate nature and terms of long-term creditors to evaluate repayment risk and potential refinancing needs.
• Confirm business model sustainability given the micro-entity scale and limited capital, especially in the licensed restaurant sector which can be volatile.
• Assess director background and related party transactions given the sole director also operates as chef, for governance considerations.