Company Number: 12578544

Analysis Date: 2025-07-20 11:13 UTC

1. Risk Rating: HIGH
   Cosmopolitan Catering Ltd exhibits significant financial distress characterized by persistent negative net current assets and shareholders’ funds, and zero cash at the year-end. The company's liabilities substantially exceed its assets, indicating high solvency risk.

2. Key Concerns:

• Negative Net Current Assets: The company’s net current assets remain deeply negative (£-16,989 in 2024), indicating inability to cover short-term liabilities with current assets.
• Zero Cash Balance: As of the latest accounts, the company holds no cash, raising serious liquidity concerns and potential cash flow issues to meet immediate obligations.
• Accumulated Losses: Retained earnings have worsened to a deficit of £14,812, reflecting ongoing operating losses without signs of recovery, threatening operational sustainability.

3. Positive Indicators:

• No Overdue Filings: The company is current on its statutory accounts and confirmation statement filings, suggesting compliance with regulatory requirements.
• Small Fixed Asset Base: Presence of tangible fixed assets (£2,277 net book value) could provide some collateral value.
• Single Director with Stable Appointment: The sole director has been in place since incorporation, indicating stable governance at the director level.

4. Due Diligence Notes:

• Cash Flow Analysis: Investigate recent cash flow trends and arrangements for funding ongoing operations given zero cash on hand.
• Creditor Relationships: Clarify terms and status of director’s current account liabilities (£15,069), as this may indicate shareholder loans or deferred payments.
• Future Business Plans: Review management’s strategy for returning to profitability and addressing accumulated losses.
• Audit or Review Status: Confirm if unaudited accounts fully reflect financial position or if additional assurance is needed.
• Employee and Operational Data: Despite being active, company reports no employees, so verify operational status and revenue generation capability.