Company Number: 13941054

Analysis Date: 2025-07-20 18:17 UTC

1. Risk Rating: HIGH
   The company displays significant solvency and liquidity concerns based on its latest financial data. Current liabilities considerably exceed current assets, leading to negative net working capital. The overdue accounts filing further raises compliance concerns.

2. Key Concerns:

• Negative Net Current Assets: As of 31 May 2023, current liabilities (£77,259) greatly surpass current assets (£36,283), resulting in a net current liability position of £40,976. This indicates potential short-term liquidity stress.
• Overdue Accounts Filing: The 2023 accounts are overdue, which could signal governance or operational issues and may lead to penalties or regulatory scrutiny.
• Significant Related Party Debt: £47,393 is owed to the parent company (Fika Coffee And Eggs Ltd), indicating dependency on intra-group financing which may not be sustainable if the parent company encounters difficulties.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: Despite liquidity issues, net assets and shareholders’ funds stand at £9,239, reflecting some retained equity.
• Tangible Fixed Assets Investment: The company holds tangible fixed assets valued at £50,215, which could support operational activities and potential borrowing capacity.
• Active Status with Recent Confirmation Statement Filed: The company is active and has filed its confirmation statement on time, indicating some level of compliance with statutory requirements.

4. Due Diligence Notes:

• Investigate the nature and terms of the related party debt to the parent company and assess its repayment schedule and impact on cash flows.
• Obtain full profit and loss information to assess operational profitability or losses which are not disclosed in filleted accounts.
• Confirm whether the company has access to additional financing or cash reserves beyond those indicated in the balance sheet.
• Review management’s plans to address the negative working capital and overdue accounts filing to ensure ongoing compliance and financial stability.
• Assess the operational model and market position of the company given the SIC code (unlicensed restaurants and cafes), especially in light of its recent incorporation in 2022 and rapid increase in employees.