Company Number: 14375334

Analysis Date: 2025-07-29 15:54 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to its negative net assets, significant current liabilities exceeding current assets by a large margin, and reliance on director-related creditor financing. These factors indicate solvency and liquidity challenges.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company reported net liabilities of £38,394 as of 30 September 2024, deteriorating from a positive net asset position of £15,995 in 2023. This decline evidences accumulated losses or impairments undermining the company’s financial stability.
• Liquidity Shortfall: Current liabilities (£298,688) substantially exceed current assets (£11,952), resulting in a large net current liability position (£286,736). This liquidity deficit raises concerns about the company’s ability to meet short-term obligations without additional funding.
• Related Party Creditors: A material creditor balance of £125,000 is owed to My Cake Supplies Limited, a company controlled by director Mr Keval Dodhia. This related party debt may indicate reliance on insider funding rather than external financing, which could impact governance and financial resilience.

3. Positive Indicators:

• Investment Property Asset Growth: The company’s investment property portfolio increased significantly from zero to £431,006 in 2024, reflecting asset acquisition and potential for income generation or capital appreciation. This enhances the fixed asset base and could support future cash flows.
• No Overdue Filings: Both annual accounts and confirmation statements are filed on time, demonstrating compliance with statutory requirements and reducing regulatory risk.
• Directors’ Control and Stability: Both directors have been continuously appointed since incorporation with no disqualifications reported, and they hold significant control, which may provide management stability.

4. Due Diligence Notes:

• Review the nature and terms of the bank loans (£200,882 secured on investment properties) including repayment schedules, covenants, and refinancing risk.
• Investigate the company’s cash flow forecasts and plans to address the current liquidity shortfall and negative equity position.
• Assess related party transactions, particularly the £125,000 creditor balance, to understand their terms, potential conflicts of interest, and impact on financial health.
• Confirm the valuation methodology for investment properties and the reasonableness of director valuations given the lack of external valuation reports.
• Examine the company’s business model sustainability and revenue generation from property lettings to gauge operational viability.