COXHEATH TAKAWAY & FUNCTIONS LTD

Executive Summary

Coxheath Takaway & Functions Ltd is a newly incorporated entity with immediate financial stress indicated by negative net assets and insufficient liquidity to cover short-term obligations. While regulatory compliance is current and ownership is consolidated, the company faces significant solvency and cash flow risks that require close monitoring and proactive capital management. Further detailed due diligence is recommended to assess operational viability and creditor exposure.

COXHEATH TAKAWAY & FUNCTIONS LTD - Analysis Report

Company Number: 15155888

Analysis Date: 2025-07-19 12:04 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position (£-2,916) and net current liabilities (£-2,916) shortly after incorporation, indicating potential solvency issues. The very low cash balance (£297) relative to current liabilities (£3,214) raises immediate liquidity concerns.

2. Key Concerns:

• Solvency Risk: Negative shareholders’ funds and net liabilities suggest the company currently owes more than it owns, a red flag for meeting obligations.
• Liquidity Constraints: Cash on hand (£297) is insufficient to cover current liabilities (£3,214), indicating potential cash flow difficulties.
• Operational Scale and Sustainability: With only 2 employees and minimal turnover data available, the business appears to be at a very early or pilot stage, limiting visibility on operational viability.

3. Positive Indicators:

• Compliance Status: The company is up to date with filing of accounts and confirmation statements, reducing regulatory risk.
• Ownership and Control: Single shareholder/director structure allows for streamlined decision-making and accountability.
• Industry Sector: Operating in takeaway food services, a sector with generally steady demand, albeit competitive.

4. Due Diligence Notes:

• Verify the nature and timing of the liabilities amounting to £3,214 to understand creditor exposure and payment terms.
• Investigate cash flow forecasts and working capital management plans given current liquidity shortfall.
• Assess turnover and revenue recognition policies and actual sales performance since incorporation to gauge operational progress.
• Review director’s plans for capital injection or financing to address negative net assets and ensure solvency.
• Confirm absence of contingent liabilities or pending legal/regulatory issues given limited financial disclosures.