EDA'S MOBILE CHEF SERVICES LTD

Executive Summary

EDA'S MOBILE CHEF SERVICES LTD demonstrates moderate financial stability with positive net current assets and compliance with filing requirements. However, rising short-term liabilities, modest equity, and dependence on director loans pose moderate solvency and liquidity risks. Further examination of cash flows and tax obligations is recommended to fully assess operational sustainability.

EDA'S MOBILE CHEF SERVICES LTD - Analysis Report

Company Number: 13953669

Analysis Date: 2025-07-20 18:07 UTC

1. Risk Rating: MEDIUM
   The company shows a modest net asset position with limited cash reserves and some reliance on director loans. Although it currently meets its obligations, the low equity base and increasing liabilities after one year present a moderate solvency risk.

2. Key Concerns:

• Declining net assets from £114 in 2024 to £102 in 2025, indicating limited equity buffer.
• Significant increase in short-term liabilities (current liabilities rose from £301 in 2024 to £4,005 in 2025), largely driven by taxation and social security costs, suggesting potential cash flow pressure.
• Reliance on director’s loan account (£655 falling due after one year) which decreased from £1,900, possibly indicating reduced external funding support or repayment pressure.

3. Positive Indicators:

• The company is current with all statutory filings, indicating good compliance and governance practices.
• Positive net current assets (£757), meaning it has more current assets than current liabilities to cover short-term obligations.
• Ownership and control concentrated in a single director/shareholder which can facilitate agile decision-making.

4. Due Diligence Notes:

• Investigate the nature and timing of taxation and social security liabilities to assess the risk of payment delays or penalties.
• Review cash flow forecasts and working capital management to evaluate liquidity sustainability, given the modest cash balance (£4,762).
• Clarify the terms and stability of the director’s loan account, including any repayment schedules or potential for additional funding.
• Assess revenue trends and profitability beyond the filleted accounts (profit and loss figures are not publicly available) to understand operational viability.
• Confirm whether any contingent liabilities or off-balance sheet risks exist that could impact financial stability.