Company Number: 09985193

Analysis Date: 2026-03-25 07:29 UTC

1. Risk Rating: MEDIUM
   The company demonstrates modest but improving net asset growth and maintains active filings with no overdue accounts, indicating baseline compliance and operational status. However, consistent negative net current assets (working capital deficits) raise concerns about short-term liquidity and solvency risks.

2. Key Concerns:

• Negative Net Current Assets: The 2025 accounts show current liabilities (£113,945) exceeding current assets (£40,430) by a significant margin (£73,515 deficit), implying potential liquidity constraints that could affect the company’s ability to meet short-term obligations timely.
• Declining Fixed Assets: Fixed assets decreased from £129,845 in 2024 to £103,876 in 2025, potentially signaling asset disposals or impairment that might impact operational capacity or future revenue generation.
• Micro-Entity Filing and Limited Financial Detail: Being a micro-entity with minimal disclosure limits insight into profitability, cash flow, and debt structure, restricting comprehensive risk evaluation.

3. Positive Indicators:

• Growing Net Assets: Shareholders’ funds increased from £28,037 in 2024 to £30,361 in 2025, demonstrating a modest strengthening of the company’s equity base.
• Consistent Compliance: The company filed accounts and confirmation statements on time, indicating adequate governance and regulatory adherence.
• Stable Employment: An average of 10 employees maintained over recent years suggests operational stability in staffing levels.

4. Due Diligence Notes:

• Review Profit & Loss and Cash Flow Details: Obtain the full profit and loss account and cash flow statements to assess profitability trends and actual liquidity.
• Investigate Causes of Working Capital Deficit: Clarify reasons behind the recurring negative net current assets – is it transient timing differences, supplier payment terms, or structural debt?
• Asset Valuation and Disposal: Confirm the nature of the fixed asset reduction and whether it reflects normal disposals or impairment that could affect operations.
• Director and Ownership Stability: Mrs Sonia Douglas is the sole director and significant shareholder; assess any related party transactions or concentration risks.
• Sector-Specific Risks: As an unlicensed restaurant/cafe business (SIC 56102), sector sensitivity to economic cycles and operating margins should be evaluated.