Company Number: 14189667

Analysis Date: 2025-07-20 16:46 UTC

1. Risk Rating: MEDIUM
   The company shows ongoing net current liabilities, indicating potential short-term liquidity pressure despite positive net assets. The micro-entity status limits financial disclosure detail, necessitating cautious interpretation.

2. Key Concerns:

• Negative Net Current Assets: Consistent net current liabilities of approximately £47k (2024) and £76k (2023) suggest the company’s current liabilities exceed current assets, posing liquidity risk for meeting short-term obligations.
• Declining Fixed Assets: A reduction in fixed assets from £105.9k (2023) to £84.7k (2024) could indicate asset disposals or depreciation outpacing reinvestment, potentially impacting operational capacity.
• Limited Financial Transparency: As a micro-entity with unaudited, filleted accounts, there is limited visibility on profitability, cash flows, or contingent liabilities, increasing uncertainty about financial stability.

3. Positive Indicators:

• Increasing Net Assets and Shareholders’ Funds: Net assets grew from £28.6k (2023) to £36.8k (2024), reflecting an improved equity position, which may provide some buffer against financial stress.
• On-Time Filing: The company’s accounts and confirmation statement filings are up to date, indicating compliance with regulatory requirements.
• Stable Employment: The average number of employees remained steady at 2, suggesting operational consistency in human resources.

4. Due Diligence Notes:

• Cash Flow Analysis: Investigate underlying cash flows to assess how the company manages negative working capital and funds operations.
• Profitability and Revenue Trends: Obtain P&L details or management accounts to understand earnings quality and revenue sustainability in the event catering sector.
• Director and Management Background: Review directors’ conduct records and relevant experience to evaluate operational stewardship.
• Creditors and Debt Profile: Clarify the nature and maturity of current liabilities to evaluate refinancing or repayment risk.
• Asset Valuation: Confirm the nature of fixed assets and reasons for their decline to assess impact on business capability.