Company Number: 14739293

Analysis Date: 2025-07-29 12:57 UTC

1. Risk Rating: MEDIUM
   The company is very new, incorporated less than two years ago, with limited financial history. The balance sheet shows modest net assets (£4,275) and positive net current assets. However, current liabilities mainly consist of taxation and social security (£10,875), which could indicate cash flow pressure. The small scale and early stage of operations elevate risk compared to more established businesses.

2. Key Concerns:

• Taxation and social security liabilities (£10,875): These form the bulk of current liabilities and may strain liquidity if not managed carefully.
• Limited financial track record and scale: Only one financial year of data, low turnover implied by the size of current assets and stock, and small net assets restrict robust assessment of operational sustainability.
• Concentration of control: Single shareholder/director with 75-100% ownership and full control may increase governance risk due to lack of oversight.

3. Positive Indicators:

• Positive net current assets (£4,275): Current assets exceed current liabilities, indicating short-term solvency.
• Cash balance of £15,648: Represents a reasonable cash buffer relative to liabilities.
• No overdue filings: The company is compliant with statutory filing deadlines, demonstrating regulatory adherence.
• Small company exemption: The company appropriately uses the small companies regime, reducing administrative burden.

4. Due Diligence Notes:

• Review turnover and profitability trends as they emerge in subsequent financial periods to assess revenue sustainability.
• Investigate the nature and timing of taxation and social security liabilities to understand potential cash flow impacts and whether payment plans or disputes exist.
• Confirm details of any related party transactions or loans from the director or shareholders, given the concentration of ownership.
• Monitor for any changes in director appointments or PSC structure to assess governance dynamics.
• Evaluate the business model and competitive positioning in the licensed restaurant sector (SIC 56101) to assess operational risks.