Company Number: 15009105

Analysis Date: 2025-07-20 16:50 UTC

1. Credit Opinion: DECLINE
   FOOD EASY LTD is a newly incorporated company (July 2023) operating in take-away food services. Its latest accounts for the first 13 months show net current liabilities of £20,846 and net negative shareholders’ funds of the same amount, indicating the company is currently insolvent on a balance sheet basis. The entire current liabilities consist of loans from the director (£29,096), which suggests the business is dependent on director funding rather than generating operational cash flow. Given the negative equity position and lack of trading history, the company’s ability to service external debt or new credit facilities is highly uncertain at this stage. No material assets or cash balances have been reported to offset the liabilities.

2. Financial Strength:
   The balance sheet shows no fixed assets and only £8,250 in debtors (likely trade receivables or similar). Current liabilities exceed current assets by £20,846. Shareholders’ funds are negative, reflecting accumulated losses or initial operating deficits. The company is in the micro category but has a balance sheet indicative of start-up losses or initial capital insufficiency. Reliance on director loans as the sole short-term funding source raises concerns about financial resilience and capital adequacy.

3. Cash Flow Assessment:
   No cash or cash equivalents are disclosed, and liquidity is weak given the negative net current assets. The company employs 2 staff but does not show evidence of positive cash generation or working capital buffers. The director loan provides short-term financing but is not a sustainable funding source for ongoing operations or credit obligations. Without positive operating cash flows or external equity injection, the company may struggle to meet payment terms or unexpected expenses.

4. Monitoring Points:

• Improvement in net current assets and shareholder funds to positive territory.
• Generation of positive operating cash flows and reduction of director loans.
• Filing of next accounts and confirmation statements on time.
• Any material change in business activity or capital structure.
• Director’s ability to support the business financially or operationally.