CAFE 41 WIRRAL LTD

Executive Summary

CAFE 41 WIRRAL LTD demonstrates clear solvency and liquidity concerns, with negative net assets and current liabilities exceeding current assets as of the most recent accounts. While the company maintains regulatory compliance and has stable ownership, financial indicators suggest operational and financial stress that require closer examination of cash flows and liabilities. Investors should approach with caution pending further due diligence.

CAFE 41 WIRRAL LTD - Analysis Report

Company Number: 14134829

Analysis Date: 2025-07-29 16:14 UTC

1. Risk Rating: HIGH
   The company shows negative net assets and net current liabilities, indicating that current liabilities exceed current assets. This suggests potential solvency issues and raises concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Negative net assets of £1,958 as at 31 May 2024, worsening from the previous year’s negative £1,131.
• Current liabilities (£11,168) exceed current assets (£8,259), resulting in a negative net current asset position (-£2,909) that deteriorated compared to prior years.
• Reduction in average employees from 4 to 3 may indicate operational downsizing or challenges in sustaining business activities.

3. Positive Indicators:

• The company is current on all filings, with no overdue accounts or confirmation statements, indicating compliance with statutory requirements.
• Fixed assets have increased slightly, potentially reflecting some investment in long-term assets.
• Sole director and 75-100% controlling shareholder Mr. Gholamreza Javdani appears stable with no noted disqualifications or compliance issues.

4. Due Diligence Notes:

• Investigate the nature and maturity profile of current liabilities to assess liquidity risk and potential refinancing needs.
• Review cash flow statements and bank balances, if available, to understand short-term liquidity beyond balance sheet snapshots.
• Assess revenue trends and profitability metrics to evaluate operational sustainability and prospects for reversing negative equity.
• Evaluate any contingent liabilities or off-balance sheet obligations that may exacerbate financial strain.
• Confirm the business model viability given employee reduction and any other operational factors affecting future performance.