Company Number: 13049371

Analysis Date: 2025-07-20 12:40 UTC

1. Risk Rating: HIGH
   The company exhibits persistent net current liabilities and net asset deficits over the last five years, indicating ongoing solvency issues. The negative shareholders' funds and reliance on minimal share capital further underscore financial vulnerability.

2. Key Concerns:

• Solvency Risk: The company has reported net liabilities each year since incorporation, with net current liabilities consistently above £2,600 and net asset deficits worsening from £3,632 in 2020 to £2,642 in 2024. This suggests an inability to meet obligations from existing assets.
• Liquidity Concerns: Current liabilities substantially exceed current assets, indicating insufficient short-term liquidity to cover debts due within one year. This raises concerns about cash flow management and operational continuity.
• Operational Stability: The company operates with only one employee and minimal share capital (£1.00), typical of a micro-entity, but the financial position indicates ongoing losses or lack of profitability. The absence of a profit and loss statement and no audit further limit visibility into operational performance and sustainability.

3. Positive Indicators:

• Compliance: The company is up to date with both accounts and confirmation statement filings, with no overdue submissions or penalties reported. This suggests good regulatory compliance and governance diligence.
• Ongoing Activity: The company remains active since incorporation in 2020, maintaining operations in the takeaway food sector, which can have steady demand.
• Director Stability: There is a single director with consistent appointment since incorporation, reducing governance complexity or director turnover risk.

4. Due Diligence Notes:

• Obtain detailed profit and loss accounts or management accounts to assess revenue trends, expenses, and cash flow dynamics, as these are not publicly filed under micro-entity exemptions.
• Investigate the reasons for persistent negative net assets and liabilities—whether due to accumulated losses, creditor terms, or other structural issues.
• Assess any contingent liabilities or off-balance sheet obligations that might exacerbate financial strain.
• Confirm the nature and timing of creditor repayments and whether there are any ongoing negotiations or restructuring plans.
• Evaluate the business model’s viability given the financial position and industry conditions, including market competition and cost structure.