Company Number: SC702561

Analysis Date: 2025-07-29 13:54 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by negative net current assets (liabilities) of £3,242 in 2024 and £2,527 in 2023, indicating it does not have sufficient short-term assets to cover its liabilities. The consistent negative working capital and net liabilities position reflect an ongoing financial strain.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£4,190) consistently exceed its current assets (£948 in 2024), indicating potential difficulty meeting short-term obligations.
• Small Scale and Limited Financial Cushion: As a micro-entity with only one employee and very low asset base, the business is vulnerable to operational shocks and has limited capability to raise capital internally.
• No Audit or Detailed Financial Information: The micro-entity exemption limits insight into detailed financial performance, cash flow, and operational sustainability, raising uncertainty regarding business viability.

3. Positive Indicators:

• Active Status and Regulatory Compliance: The company is active with all accounts and confirmation statements filed on time, reflecting good compliance with statutory requirements.
• Single Controlling Shareholder/Director: The director and sole significant controller (Mr Dorjan Rabija) appears stable and consistent since incorporation, which may facilitate decisive management actions.
• Business Niche: Operating in the take-away food sector (SIC 56103), a sector with potential demand that might allow for growth or turnaround if managed well.

4. Due Diligence Notes:

• Confirm Cash Flow and Payment History: Investigate whether the company is currently able to meet its supplier and creditor payments despite negative working capital.
• Examine Underlying Causes of Negative Working Capital: Review detailed financials, if available, or request management accounts to understand whether losses or timing issues are driving the liquidity shortfall.
• Assess Business Model and Market Position: Evaluate the viability of the mobile food business and its competitive positioning in Glasgow to determine operational sustainability.
• Review Director’s Plans and Financial Support: Clarify whether the director intends to inject capital or restructure liabilities to improve solvency.
• Check for Contingent Liabilities or Legal Issues: Although no such details are present, verifying absence of hidden risks is prudent.