Company Number: 13484574

Analysis Date: 2025-07-20 14:50 UTC

1. Risk Rating: HIGH
   The company shows extremely limited net assets (£1) and current net assets (£1) with liabilities almost equal to current assets. There is no indication of profitability or retained earnings, and the financial position appears marginal at best, suggesting significant solvency and liquidity risk.

2. Key Concerns:

• Minimal Net Assets & Working Capital: Net assets and net current assets stand at £1, indicating a near break-even balance sheet with almost no buffer to absorb financial shocks or meet obligations.
• Debtors and Liabilities Composition: Debtors consist entirely of amounts due after more than one year (£21,000), which are illiquid, while current liabilities are nearly equal to current assets, signaling tight liquidity and potential cash flow issues.
• Related Party Funding Dependency: The large amounts owed to group undertakings (£20,999) suggest reliance on intra-group funding rather than independent operational cash flow, raising concerns about operational sustainability and financial independence.

3. Positive Indicators:

• Up-to-date Compliance: No overdue filings for accounts or confirmation statements, indicating compliance with statutory requirements.
• Active Status & Established Management: The company is active with a consistent director since inception and a clear controlling party, which may provide some governance stability.
• Small Company Reporting Exemptions: The company benefits from small company exemptions, which is typical and reduces administrative burdens, although this limits financial disclosure.

4. Due Diligence Notes:

• Cash Flow and Profitability Analysis: Investigate underlying cash flows and income generation, as accounts omit profit and loss account details and show minimal net assets.
• Nature and Recoverability of Debtors: Clarify the nature of the £21,000 debtors due after more than one year and assess likelihood and timing of recovery.
• Group Financial Health and Support: Assess the financial strength and willingness of the parent and related companies (Nuoc Cham Ltd and Cau Lau Holdings Limited) to support this entity, given the apparent reliance on group funding.
• Contracts and Revenue Streams: Review contracts and operational viability given the company’s SIC classification in unlicensed restaurants and cafes and minimal employee count.
• Director and Governance Review: Confirm no director disqualifications or governance issues, and evaluate management capability given limited resources.