Company Number: 14785920

Analysis Date: 2025-07-20 12:48 UTC

1. Risk Rating: HIGH
   The company exhibits a negative shareholders' equity position with liabilities exceeding assets and no indication of profitable operations yet. As a newly incorporated micro-entity with accumulated losses and working capital deficits, solvency and liquidity risks are significant.

2. Key Concerns:

• Negative Shareholders’ Funds (£-12,646) indicating insolvency on a balance sheet basis.
• Current liabilities (£18,672) substantially exceed current assets (£3,388), resulting in a negative net current asset position, signaling potential liquidity stress.
• Limited operating history (incorporated April 2023) with no audit and no profitability data, increasing uncertainty about operational sustainability.

3. Positive Indicators:

• Compliance with filing obligations: accounts and confirmation statements are filed on time with no overdue filings or penalties reported.
• Clear ownership structure with identified PSCs and registered director actively involved.
• Active web presence consistent with its business line (unlicensed restaurant/cafe) suggests ongoing operations and marketing efforts.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to assess imminent payment obligations and potential refinancing needs.
• Review cash flow forecasts and management plans to address negative working capital and improve liquidity.
• Obtain management accounts or operational data to evaluate revenue generation, cost structure, and prospects for profitability.
• Confirm no undisclosed contingent liabilities or related party transactions that may impact financial stability.
• Assess director’s background and expertise given the company is early stage and in a challenging industry sector.