Company Number: 15076815

Analysis Date: 2025-07-20 14:56 UTC

1. Risk Rating: HIGH

Justification: The company exhibits significant negative net current assets and net liabilities, indicating a critical solvency risk. The substantial creditor balance due within one year, coupled with large related party debt with no fixed repayment terms, raises serious concerns about liquidity and financial stability.

2. Key Concerns:

• Severe Working Capital Deficiency: Net current assets are negative by £109,082, signaling that current liabilities far exceed current assets, which may impede the company’s ability to meet short-term obligations as they fall due.
• High Related Party Debt: The company owes £108,507 to an associate company without any fixed repayment schedule or interest, increasing the risk that this liability may not be serviced promptly or could be subject to related party risk.
• Negative Equity Position: Shareholders’ funds and net assets stand at negative £98,150, indicating accumulated losses or financial distress early in the company’s life cycle, which could compromise ongoing operational viability.

3. Positive Indicators:

• No Overdue Filings: The company’s accounts and confirmation statements are filed on time, suggesting regulatory compliance and good corporate governance in terms of statutory obligations.
• Small Employee Base: With only 4 employees, the company has a relatively low fixed cost base, which may be easier to manage or scale depending on future business developments.
• Clear Ownership and Control: Single person with 75–100% shares and voting rights provides streamlined decision-making, which could be advantageous if rapid corrective actions are needed.

4. Due Diligence Notes:

• Investigate the nature and terms of the related party transactions with Gem Engineering & Services UK Ltd, including the reason for the large debt balance and any plans for its repayment or restructuring.
• Assess the company’s cash flow forecasts or business plan to determine how it intends to address the significant working capital shortfall and negative net assets.
• Confirm whether the director’s loan of £18,421 is sustainable and whether there are any plans or agreements for its repayment.
• Review any contingent liabilities or off-balance sheet items that could further impact solvency.
• Evaluate the operational model and revenue generation capacity given the industry classification (processing and preserving fruit and vegetables) and the company’s short trading history since incorporation in August 2023.