Company Number: 13439306

Analysis Date: 2025-07-29 17:26 UTC

1. Risk Rating: MEDIUM
   Berwick Food Ltd shows some financial strain indicated by negative net assets in the latest accounting period. However, the company remains active, current on filings, and maintains positive net current assets, which mitigates immediate solvency concerns. The presence of long-term liabilities and declining net assets raises caution but does not signify imminent distress.

2. Key Concerns:

• Negative Shareholders’ Funds: The company’s net assets declined from a positive £2 in 2023 to a negative £2,151 in 2024, reflecting accumulated losses or financial erosion.
• Significant Long-Term Liabilities: Trade and other payables due after one year remain substantial (£72,668 in 2024), representing a potential solvency risk if cash flows do not improve.
• Lack of Profit & Loss Disclosure: The absence of an income statement limits assessment of operational profitability and cash flow generation, hindering a full evaluation of business sustainability.

3. Positive Indicators:

• Current Assets and Liquidity: Cash and current assets increased to £82,498, providing good short-term liquidity and a healthy net current asset position (£67,018) to meet short-term obligations.
• Compliance and Filing Status: No overdue accounts or confirmation statements, indicating sound regulatory compliance and governance practices.
• Employment Growth: The average number of employees increased from 6 to 8, suggesting some operational expansion or stability.

4. Due Diligence Notes:

• Obtain Profit & Loss Data: Investigate the company’s revenue, gross margin, and net profit trends to assess sustainable operations and cash flow sufficiency.
• Understand Long-Term Debt Terms: Clarify the nature and repayment schedule of the long-term payables (£72,668) to evaluate refinancing or default risks.
• Review Director Background and Governance: Confirm no adverse director conduct or related party transactions that could impact company stability.