Company Number: 14986583

Analysis Date: 2025-07-29 15:15 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (July 2023) and operates as a micro-entity in the unlicensed restaurant and café sector. The balance sheet shows modest net assets (£10,291) and a notable amount of long-term creditors (£22,500), which could indicate financing or deferred liabilities. Current liabilities exceed current assets, resulting in a negative net working capital position (-£2,209). This raises some concerns about short-term liquidity despite positive net assets. The limited operational history and small scale add to the risk profile.

2. Key Concerns:

• Liquidity Position: Current liabilities within one year (£7,500) exceed current assets (£5,291), indicating potential short-term cash flow constraints.
• Long-term Liabilities: Significant creditors after one year (£22,500) relative to net assets may pressure solvency if these obligations become due without sufficient cash generation.
• Newly Incorporated with Limited Financial History: Lack of operational track record and limited financial data restricts assessment of sustainability and profitability.

3. Positive Indicators:

• Positive Net Assets and Shareholders' Funds: The company reports net assets of £10,291, reflecting some equity buffer.
• No Overdue Filings: Accounts and confirmation statements are up to date, suggesting compliance with regulatory requirements.
• Single Controlling Director and Shareholder: Clear ownership structure with Mrs. Ayesha Clemmett-Patel holding full control, which may facilitate decisive management and governance.

4. Due Diligence Notes:

• Examine Nature and Terms of Long-term Creditors: Further detail on the £22,500 creditors due after one year is critical to understanding repayment obligations and associated risks.
• Assess Cash Flow Projections: Request management accounts or cash flow forecasts to evaluate the company’s ability to meet near-term liabilities.
• Review Business Plan and Market Position: Given the company operates in the competitive restaurant sector, understanding its business model, customer base, and growth prospects is essential.
• Verify Director’s Background and Experience: Although no adverse records appear, confirming the director’s capability to manage the business effectively is prudent.