Company Number: 13991809

Analysis Date: 2025-07-20 18:26 UTC

1. Risk Rating: HIGH
   The company shows significant liquidity and solvency concerns as evidenced by net current liabilities of approximately £137,847 against a negligible cash balance (£6), and negative net assets (£11,753). This financial position indicates difficulty meeting short-term obligations and an erosion of shareholder equity within two years of operation.

2. Key Concerns:

• Severe liquidity shortfall with current liabilities vastly exceeding current assets, risking inability to cover immediate debts.
• Negative net assets and shareholders' funds suggest the company is technically insolvent on a balance sheet basis.
• Relatively high fixed asset investment (£126,094) compared to cash reserves and working capital, potentially indicating overextension or illiquid asset base.

3. Positive Indicators:

• The company is compliant with filing deadlines for accounts and confirmation statements, showing regulatory adherence.
• Directors and persons of significant control are clearly identified with no adverse records reported, indicating stable governance at this level.
• The business has been operational since March 2022, implying some operational continuity in a challenging sector (licensed restaurants).

4. Due Diligence Notes:

• Investigate the nature of the £137,853 creditors: payment terms, creditor composition, and any overdue or disputed balances.
• Clarify the depreciation policy and valuation of tangible fixed assets (£126,094), including whether these assets are generating revenue or are underutilized.
• Review cash flow forecasts and management plans to address the current liquidity and solvency gap.
• Assess any financing arrangements or shareholder support intended to remedy the negative net asset position.
• Understand the business model viability and market conditions impacting revenue generation since inception.