Company Number: 13592046

Analysis Date: 2025-07-19 12:41 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets and net current assets for the last two reported years, indicating potential solvency concerns. The reliance on shareholder loans to fund operations and lack of cash reserves further elevate liquidity risk. Absence of audit and limited financial disclosures restrict full visibility but the available data signals financial stress.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: Net liabilities increased from (£1,479) in 2023 to (£3,333) in 2024, showing worsening equity position.
• Negative Working Capital: Net current liabilities of (£1,475) in 2024 with zero cash reported in 2023, implying potential difficulties meeting short-term obligations.
• Dependence on Shareholder Loans: £36,858 loan from shareholders (interest-free and repayable on demand) constitutes significant liabilities, which if called could jeopardize company solvency.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, showing regulatory compliance in terms of filing deadlines.
• Single Director with Clear Control: Director and PSC records show no disqualifications or adverse governance flags.
• Investment in Subsidiary: Fixed asset investment of £35,000 in a group undertaking could represent strategic business assets, although valuation and recoverability require review.

4. Due Diligence Notes:

• Investigate the nature and terms of shareholder loans and likelihood of repayment or conversion to equity.
• Review cash flow forecasts and operational plans to assess sustainability and ability to improve liquidity.
• Obtain full financial statements including profit and loss details to understand revenue, expenses, and profitability trends.
• Confirm no undisclosed contingent liabilities or related party transactions beyond those stated.
• Clarify the business model and market position in the unlicensed restaurant and café sector, including any pandemic or economic impact considerations.