CHILLI & GINGER DESIGN LTD

Executive Summary

Chilli & Ginger Design Ltd exhibits significant financial stress with ongoing negative equity, zero cash reserves, and current liabilities exceeding assets, posing a high risk to solvency and liquidity. While the company meets filing requirements and remains active, its operational scale and financial position warrant thorough investigation to ascertain business viability and risk exposure. Investors should proceed cautiously and seek further detailed financial and operational information before engagement.

CHILLI & GINGER DESIGN LTD - Analysis Report

Company Number: 12757629

Analysis Date: 2025-07-29 18:39 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net assets and net current liabilities, with zero cash at the latest financial year-end, indicating solvency and liquidity challenges.

2. Key Concerns:

• Negative Shareholders’ Funds: The company has deteriorated from positive equity at incorporation to a deficit of £2,487 as of 2024, signaling accumulated losses or liabilities exceeding assets.
• Liquidity Shortfall: Cash reserves have depleted to zero despite outstanding current liabilities of £2,485, suggesting potential difficulties in meeting short-term obligations.
• Operational Viability: The company operates with only one employee/director, and tangible fixed assets were fully disposed of by 2024, possibly indicating limited operational capacity or business contraction.

3. Positive Indicators:

• Compliance: All statutory filings, including annual accounts and confirmation statements, are up to date and not overdue, showing regulatory compliance and governance awareness.
• Active Status: The company remains active with no indication of insolvency proceedings, suggesting ongoing business activity despite financial strain.
• Niche Industry: Operating in specialised design activities (SIC 74100) may offer potential for value-added services or market differentiation.

4. Due Diligence Notes:

• Investigate the nature and timing of liabilities causing current liabilities to rise and the absence of cash at year-end.
• Assess the company’s revenue generation, profitability trends, and future cash flow projections since turnover and profit/loss details are not provided in the accounts document.
• Clarify the business model and operational structure given the disposal of all tangible assets and the minimal workforce, to evaluate sustainability.