Company Number: 13917864

Analysis Date: 2025-07-29 18:47 UTC

1. Risk Rating: HIGH
   The company shows extremely limited net assets (£38) and minimal current assets (£3,846) against nearly equivalent current liabilities (£3,808) as of the latest accounts. This razor-thin working capital position alongside minimal equity raises significant concerns regarding the company’s ability to meet short-term obligations and sustain operations.

2. Key Concerns:

• Poor Liquidity Position: Current assets barely cover current liabilities, indicating potential cash flow difficulties.
• Minimal Capitalization and Net Assets: Net assets and shareholders’ funds stand at just £38, suggesting very limited financial buffer.
• Early Stage with Limited Financial History: Incorporated in 2022 and only two years of accounts filed, providing insufficient operational track record to assess stability or growth prospects.

3. Positive Indicators:

• Compliance with Filing Requirements: No overdue accounts or confirmation statements, showing good regulatory discipline.
• Clear Ownership and Control Structure: Two directors/shareholders with equal control, both resident at the registered address, simplifying governance oversight.
• Sector Focus on Food Services and Manufacture: Potentially viable business activities in a stable industry, though scale is very small.

4. Due Diligence Notes:

• Investigate the company’s cash flow statements and any off-balance-sheet liabilities or contingent liabilities not visible in micro-entity accounts.
• Review management plans for working capital improvement and business development since incorporation.
• Confirm whether the small asset base reflects early stage setup or undercapitalization that could threaten operational continuity.
• Assess directors’ background and financial commitment given their dual roles and significant control.
• Clarify any related party transactions or loans that might affect solvency.