Company Number: 12390526

Analysis Date: 2025-07-29 15:32 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as evidenced by negative net current assets and negative net assets in the latest accounts. The decline in net assets from prior years and persistent current liabilities exceeding current assets indicate financial distress.

2. Key Concerns:

• Negative net current assets (£-3,752) and total net assets (£-25,717) as of 31 January 2024, signaling insolvency on a balance sheet basis.
• Large creditor balances, with current liabilities of £44,272 and long-term liabilities of £44,124, which suggest heavy indebtedness relative to assets.
• Declining fixed assets and shareholder funds over recent years, which may reflect asset disposals or write-downs and erosion of equity.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines, indicating ongoing regulatory compliance and administrative discipline.
• Stable current assets (~£40,000) which may provide some short-term liquidity buffer.
• Ownership and management are concentrated, with a single director and shareholder, potentially allowing for swift decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the company's liabilities, particularly creditors due after more than one year, to assess restructuring prospects or risk of default.
• Review cash flow statements (not provided) to evaluate operational cash generation and liquidity trends.
• Examine the company's business model and market position in the takeaway food sector to assess sustainability given financial strain.
• Confirm whether there are any ongoing disputes, contingent liabilities, or enforcement actions by creditors.
• Assess director’s plans for turnaround or recapitalization given the negative equity position.