Company Number: SC721077

Analysis Date: 2025-07-29 14:35 UTC

1. Risk Rating: MEDIUM
   The company shows growth in assets and net current assets, but net assets remain very low relative to total liabilities, particularly long-term debt. The high creditors falling due after one year (£296k) compared to modest shareholders’ funds (£8k) indicates moderate solvency risk.

2. Key Concerns:

• High long-term liabilities: £296,176 of creditors due after more than one year, including a significant director loan (£128,068), raises questions about the company’s long-term financial structure and reliance on related-party funding.
• Low net assets: Net assets of only £8,335 on total assets less current liabilities of £304,511 suggest thin equity buffers, which may impact resilience to adverse trading conditions.
• Profit and Loss Account not filed: The company has opted not to deliver the profit and loss account with its accounts, limiting insight into profitability, cash flow generation, and operational performance.

3. Positive Indicators:

• Improved liquidity: Cash increased from £61,066 to £184,807 and net current assets more than doubled to £139,113, indicating better short-term liquidity to meet immediate obligations.
• Growing asset base: Tangible fixed assets increased substantially from £58,197 to £165,398, implying investment in operational capacity.
• Timely filings: Accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance.

4. Due Diligence Notes:

• Obtain and review management accounts or internal financial reports to assess profitability, cash flow trends, and operational sustainability since the profit and loss accounts are not publicly filed.
• Clarify the nature, terms, and repayment plans for the long-term creditors, especially the director loan, to assess refinancing risks.
• Investigate the business model and competitive positioning in the retail food sector (SIC 47110) to evaluate market risks and growth prospects.
• Confirm if the company has any contingent liabilities or off-balance-sheet obligations not reflected in the filings.
• Review director background and governance practices given the sole shareholder and director control to ensure sound management and oversight.