DEVONS SPICE LTD

Executive Summary

Devons Spice Ltd presents a financially stable profile with positive net assets and liquidity, and no apparent regulatory compliance issues. The company’s small scale and declining fixed assets warrant further scrutiny to assess operational sustainability. Overall, the risk of insolvency or liquidity distress appears low based on the available data.

DEVONS SPICE LTD - Analysis Report

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.