Company Number: 14720814

Analysis Date: 2025-07-20 15:49 UTC

1. Risk Rating: HIGH
   The company shows minimal net assets (£446) and a very small scale of operation reflected in current assets of only £5,000 against current liabilities of £4,554. Given the limited financial resources and micro-entity status, solvency and liquidity risks are elevated for an investor.

2. Key Concerns:

• Very low net assets and minimal working capital, indicating tight liquidity and limited buffer to meet obligations.
• Company is newly incorporated (2023) with only one reporting period, offering no financial track record or profitability data.
• Single director change shortly before the latest accounts, which may suggest management instability or transition risks.

3. Positive Indicators:

• All statutory filings (accounts and confirmation statements) are up to date, showing compliance with regulatory requirements.
• Ownership and control are clearly concentrated in a single individual (PSC owns 75-100% shares and voting rights), simplifying governance and decision-making.
• Micro-entity status reduces administrative burden, appropriate for a small-scale café operation.

4. Due Diligence Notes:

• Investigate the company’s business plan and cash flow projections to assess operational sustainability beyond the initial period.
• Clarify the nature and timing of any liabilities falling due after one year (£4,554), as there appears to be a possible classification inconsistency in the accounts.
• Review reasons behind the director resignation and subsequent appointment in early 2025 to understand management continuity and governance implications.
• Confirm whether the business has additional funding sources or shareholder loans not reflected in the balance sheet.