COFFEEMAX LIMITED

Executive Summary

COFFEEMAX LIMITED is a recently incorporated micro-entity reporting significant net liabilities and negative working capital, indicating high solvency risk at this early stage. While statutory filings are current and the business sector is clearly defined, the lack of operational activity and financial distress warrant close scrutiny. Potential investors should focus on cash flow viability and governance stability before engagement.

COFFEEMAX LIMITED - Analysis Report

Company Number: 14841839

Analysis Date: 2025-07-20 13:29 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant solvency concerns with net liabilities of £22,776 and negative net current assets of £31,338, indicating it is unable to meet short-term obligations from current assets. There is also no recorded employee base or trading history, suggesting operational inactivity or early-stage development with minimal revenue generation.

2. Key Concerns:

• Negative net assets and net current liabilities point to financial distress and potential insolvency risk.
• Absence of employees and no profit and loss account filed implies limited or no trading activity, raising questions on business sustainability.
• Frequent changes in directors and ultimate control concentrated among three individuals with overlapping shares may indicate governance instability or lack of independent oversight.

3. Positive Indicators:

• The company is currently active and filings (accounts and confirmation statements) are up to date and not overdue, reflecting compliance with statutory requirements.
• Incorporation is recent (May 2023), so financial losses and negative equity may reflect startup phase rather than established operational failure.
• The company operates in a known SIC classification (take-away food shops), which is a clear business sector with potential market demand.

4. Due Diligence Notes:

• Investigate cash flow and funding sources to assess how the company intends to cover its current liabilities and negative equity position.
• Confirm the status and nature of business operations given zero employees and absence of profit and loss accounts.
• Review director background and related party transactions given the changes in appointments and overlapping control to identify any potential conflicts or risk factors.
• Evaluate plans for future capital injections or operational developments that could remedy current financial deficits.