Company Number: 14705072

Analysis Date: 2025-07-29 19:52 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by negative net current assets (-£9,786) and overall net liabilities (-£3,837) within its first financial year. The small equity base and director loan further highlight capital insufficiency to meet short-term obligations.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£12,208) far exceed current assets (£2,422), indicating potential cash flow difficulties.
• Net Liabilities Position: Total assets less current liabilities result in negative net assets (-£3,837), which signals insolvency risk and potential reliance on external funding or director loans.
• Dependence on Director Loan: £3,017 of director’s loan forms part of current liabilities, suggesting reliance on director financing to cover operating costs and liabilities.

3. Positive Indicators:

• Compliance with Filing Deadlines: No overdue accounts or confirmation statements, indicating regulatory compliance and good governance practices so far.
• Active Status and Recent Incorporation: Company is active and very recently incorporated (March 2023), so early-stage financials may reflect start-up phase challenges rather than established business risk.
• Single Shareholder Control: Clear ownership structure with one PSC holding 75-100% shares, facilitating streamlined decision-making.

4. Due Diligence Notes:

• Investigate Cash Flow Trends: Assess monthly cash flow statements or management accounts to understand liquidity dynamics and cash burn rate since incorporation.
• Review Business Model Viability: Examine revenue generation, gross margins, and customer acquisition to evaluate operational sustainability in the take-away food sector.
• Director’s Financial Support: Clarify terms and sustainability of director loan advances and plans for capital injection or debt restructuring.
• Confirm Absence of Related Party Transactions or Contingent Liabilities: Check for off-balance sheet obligations or guarantees that could affect financial stability.