Company Number: 12788839

Analysis Date: 2025-07-20 16:29 UTC

1. Risk Rating: LOW
   The company displays a stable financial position with net current assets consistently positive and net assets around £23k to £31k in recent years. There are no overdue filings or regulatory concerns noted, and the company is actively trading in the takeaway food sector.

2. Key Concerns:

• Declining tangible fixed assets net book value (from £14.7k in 2023 to £9.3k in 2024) could indicate asset disposals or heavy depreciation, possibly impacting operational capacity.
• Current liabilities have increased moderately, with taxation and social security costs representing a significant portion (£12.1k in 2024), which requires monitoring for timely settlement.
• The company's scale is very small (single employee, minimal share capital), which may limit operational resilience and scalability.

3. Positive Indicators:

• Consistently positive net current assets and net asset position indicate good short-term solvency and shareholder equity.
• Cash levels are stable and substantial relative to current liabilities (£26.5k cash vs £21.4k liabilities in 2024), implying adequate liquidity.
• No overdue accounts or confirmation statements, demonstrating compliance with regulatory filing requirements.
• Controlled by a single director and shareholder, which can simplify decision-making and governance.

4. Due Diligence Notes:

• Review the nature of tangible asset reductions and assess impact on operations and capital expenditure plans.
• Examine cash flow statements and tax payment history to confirm the company’s ability to meet tax and social security obligations on time.
• Verify completeness and accuracy of debtor balances and collectability.
• Understand business sustainability in the takeaway food sector, including competition, customer base, and growth prospects given the small scale of operations.
• Confirm no undisclosed contingent liabilities or legal claims exist beyond the provisions reported.
• Assess director’s background and any potential conflicts of interest or related party transactions.