Company Number: 14579073

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

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, as evidenced by negative net current assets (£-85,349) and net liabilities (£-16,279) within its first financial period. This indicates the company’s obligations exceed its available liquid assets and equity, raising concerns about its ability to meet short-term liabilities.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£100,572) substantially exceed current assets (£15,223), indicating potential cash flow difficulties to cover immediate debts.
• Net Liabilities and Shareholders’ Deficit: The company holds a negative equity position, implying accumulated losses or undercapitalization which threatens solvency.
• Early Stage Financial Instability: Incorporated in January 2023, the company’s first financial period shows operating losses and a lack of retained earnings, highlighting operational sustainability risks.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statement are filed on time, suggesting compliance with regulatory requirements and good governance practices.
• Tangible Fixed Assets: The company has invested in tangible assets (£70,570), which may provide operational capacity and potentially collateral value.
• Directors with Significant Control and Local Presence: Both directors own 25-50% shares and reside at the business address, indicating hands-on management and control.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities (£100,572) to assess urgency and risk of default.
• Review cash flow statements and future cash flow projections to evaluate liquidity management and operational sustainability.
• Understand business model viability and market positioning in the retail sale of beverages, given the negative equity at start-up stage.
• Confirm absence of any director disqualifications or regulatory sanctions beyond the data provided.
• Examine any related party transactions or contingent liabilities not disclosed in abridged accounts.