Company Number: 14673163

Analysis Date: 2025-07-29 13:47 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net current liabilities exceeding £137k and net liabilities of approximately £65k shortly after incorporation. This suggests an inability to meet short-term obligations without additional financing or revenue growth.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£174,688) far exceed current assets (£37,642), indicating severe liquidity stress.
• Net Liabilities and Negative Equity: Shareholders’ funds are negative (£-64,802), reflecting accumulated losses and insufficient capital base.
• No Employees Reported: The average number of employees is zero despite operating in a hospitality sector, raising questions about operational capacity or outsourcing arrangements.

3. Positive Indicators:

• Tangible Fixed Assets Presence: The company holds tangible fixed assets of £72,344, which may provide some collateral value.
• Timely Filings: Both accounts and confirmation statements are up to date with no overdue filings, indicating compliance with regulatory requirements.
• Clear Ownership and Control: Directors and significant control persons are identified with substantial shareholdings, suggesting committed management.

4. Due Diligence Notes:

• Verify the nature and terms of the £172,623 other creditors; assess whether these are trade payables, loans, or other liabilities and their payment terms.
• Investigate the company’s cash flow projections and sources of funding to address current liquidity shortfalls and negative equity position.
• Clarify operational model given zero reported employees, including reliance on contractors or outsourcing, which may impact cost structure and sustainability.
• Review turnover and revenue trends as these are not provided but critical for assessing operational viability.
• Confirm whether any related party transactions or director loans exist that could affect financial stability.