Company Number: 13542326

Analysis Date: 2025-07-29 19:26 UTC

1. Risk Rating: LOW
   Justification: Canape King Limited demonstrates a strong liquidity position with cash balances significantly exceeding current liabilities as of the latest accounts date. The company shows consistent growth in net assets and shareholders' funds over the last reported years. Filing deadlines for accounts and confirmation statements are current, indicating good compliance.

2. Key Concerns:

• Increasing long-term hire purchase liabilities (£35,413 as of 2024) that may impact future cash outflows and leverage.
• Significant drop in debtors from £57,812 in 2023 to £37,310 in 2024, which could indicate issues in sales or collection that warrant further review.
• Absence of reported employees and limited disclosure on operational activities in accounts may suggest limited scale or potential dependency on the director or external contractors.

3. Positive Indicators:

• Strong net current assets of £87,100 in 2024, up from £40,635 in 2023, indicating ample working capital to meet short-term obligations.
• Cash at bank increased substantially to £91,253 in 2024 from £5,460 in 2023, supporting liquidity and operational stability.
• The company is up to date with all statutory filings and shows no overdue accounts or confirmation statements.
• The sole director holds full ownership and control, which may simplify decision-making and governance.

4. Due Diligence Notes:

• Review the nature and terms of the long-term hire purchase contracts to assess repayment obligations and impact on cash flows.
• Investigate the reasons for the reduction in trade and other debtors, including any potential write-offs or changes in credit policy.
• Confirm the operational model given the absence of employees reported; understand reliance on contractors or director involvement.
• Verify the accuracy of asset valuations, particularly tangible fixed assets which increased significantly in 2024.
• Assess any contingent liabilities or provisions, especially the increased provisions for liabilities (£10,500 in 2024).