Company Number: 13548488

Analysis Date: 2025-07-29 20:09 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, reflected by negative net assets and a substantial working capital deficiency. The persistent net liability position indicates a risk of insolvency without capital injection or operational turnaround.

2. Key Concerns:

• Negative Net Assets: At £-63,101 as of August 2024, shareholders' funds are in deficit, indicating accumulated losses and financial distress.
• Severe Working Capital Deficit: Current liabilities of £111,472 outweigh current assets of £17,880 by £93,592, suggesting difficulties meeting short-term obligations.
• Continued Losses: The trend shows worsening net liabilities from £-52,729 in 2023 to £-63,101 in 2024 despite increased fixed assets, implying operating losses or cash burn.

3. Positive Indicators:

• Compliance: Company filings including accounts and confirmation statements are up to date, with no overdue returns or accounts, indicating regulatory compliance.
• Increasing Fixed Assets: Fixed assets increased from £16,518 to £58,855 over the latest year, potentially reflecting investment in operational capacity or infrastructure.
• Active Directors and PSC Transparency: Clear information on directors and persons with significant control is available, suggesting governance transparency.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets to determine if they are liquid or usable to support operations or financing.
• Review cash flow statements and detailed profit & loss accounts (not provided) to understand the source of losses and assess cash burn rate.
• Confirm whether any debt restructuring, capital infusion, or contingency funding plans exist to address solvency concerns.
• Assess business model sustainability given the industry mix (management consultancy, food services, retail food) and operational scale (4 employees).
• Validate director experience and any historical conduct records to assess management capability in financial recovery.