Company Number: 15075916

Analysis Date: 2025-07-20 15:00 UTC

1. Risk Rating: MEDIUM
   Justification: The company is newly incorporated (2023) and currently has net assets of £101,426, which indicates some initial capital backing. However, net current assets are negative (£-15,136), showing current liabilities exceed current assets, which may point to short-term liquidity stress.

2. Key Concerns:

   • Negative Net Current Assets: Current liabilities (£142,676) exceed current assets (£127,540), potentially indicating cash flow constraints or reliance on short-term financing.
   • Newly Established Entity: With less than two years since incorporation, the company lacks a financial track record, increasing uncertainty regarding operational sustainability and creditworthiness.
   • Single Director and PSC Control: The sole director and 100% shareholder (Mr. Sarmad Soomro) concentrates both control and accountability, which may raise governance concerns especially if additional oversight mechanisms are not in place.

3. Positive Indicators:

   • Positive Net Assets: Despite negative working capital, total net assets are positive at £101,426, suggesting a reasonable asset base relative to liabilities at year end.
   • No Overdue Filings: The company’s accounts and confirmation statements are up to date, indicating compliance with regulatory filing requirements.
   • Employee Base Established: Employing an average of 6 employees within the first year may demonstrate operational activity and business development rather than a dormant or shell entity.

4. Due Diligence Notes:

   • Review detailed cash flow statements and bank balances to assess liquidity beyond balance sheet snapshot.
   • Examine nature and maturity of current liabilities to understand if they are trade creditors, short-term loans, or other obligations.
   • Investigate business plan and revenue streams given the industry classification (food services/takeaway) to evaluate operational viability and market positioning.
   • Confirm if there are any related party transactions given single shareholder/director structure.
   • Monitor director’s background and any potential adverse records or reputational risks.