Company Number: 12491282

Analysis Date: 2025-07-29 17:51 UTC

1. Risk Rating: HIGH
   The company exhibits a significant and worsening negative net current asset position and shareholders' funds, indicating a precarious solvency situation. Current liabilities exceed current assets substantially, and the negative equity position has deepened over recent years. This points to a high risk of inability to meet obligations as they fall due.

2. Key Concerns:

• Negative Net Current Assets: The 2024 balance sheet shows net current liabilities of £7,374 and negative shareholders' funds of £5,692, worsening from prior years, signaling liquidity stress.
• Declining Cash Balances: Cash on hand has fallen from £3,189 in 2023 to £1,779 in 2024, reducing immediate liquidity buffers.
• Rising Creditors: Creditors have nearly doubled in the last year (£6,865 to £11,919), increasing short-term obligations and pressure on working capital.

3. Positive Indicators:

• Active Status with Timely Filings: The company is currently active and has filed accounts and confirmation statements on time, showing compliance with regulatory requirements.
• Tangible Asset Base Growth: Tangible fixed assets increased to £1,683 in 2024 from £92 in 2023, suggesting some investment in operational capacity.
• Stable Management: The director has been in place since incorporation with no indication of disqualification or governance issues.

4. Due Diligence Notes:

• Investigate the causes behind the sharp increase in current liabilities and assess the nature and terms of these creditors (e.g., trade payables, loans).
• Review cash flow statements or bank statements to understand cash burn rate and operational cash generation.
• Confirm if there are any contingent liabilities or off-balance sheet commitments not disclosed.
• Evaluate the business model viability given the SIC code (take-away food shops); consider market position, competitive pressures, and profitability trends.
• Ascertain if the company has access to additional financing or shareholder support to mitigate liquidity risks.