Company Number: 13263714

Analysis Date: 2025-07-20 12:41 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, with net liabilities deepening over the past years and net current liabilities substantially negative. The financial statements reveal ongoing losses eroding shareholder funds, with no audit performed to independently verify figures.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company had net liabilities of £54,585 as of 31 March 2024, worsening from previous years, indicating accumulated losses and erosion of equity.
• Severe Working Capital Deficit: Net current liabilities stood at £102,301, reflecting that current liabilities far exceed current assets and cash balances, raising concerns about the company’s ability to meet short-term obligations.
• Increasing Creditors and Lease Obligations: Trade creditors and other creditors are rising, alongside substantial non-cancellable operating lease commitments (£70,000 over next five years), which could pressure cash flow further.

3. Positive Indicators:

• Consistent Filing and Compliance: The company is active, with up-to-date statutory filings and accounts, indicating compliance with regulatory requirements.
• Established Management Team: Directors have been in place since incorporation with no public disqualifications or governance issues noted.
• Operating in a Defined Sector: The business operates as a licensed restaurant, a well-understood and established sector, with tangible assets related to operations.

4. Due Diligence Notes:

• Review Detailed Profit & Loss Data: The absence of an income statement in the filing limits visibility on revenue trends and profitability; obtaining this data is critical.
• Assess Cash Flow and Debt Servicing Capacity: Given the liquidity deficits, deeper analysis of cash flow forecasts and creditor payment terms is necessary.
• Examine Directors’ Loans and Financial Support: The directors have provided interest-free loans; understanding their sustainability and any contingent liabilities is important.
• Evaluate Lease Commitments: Verify the terms and flexibility of operating leases to assess future cash obligations and potential renegotiation options.
• Confirm Going Concern Assumptions: Directors state no material uncertainties for going concern, but given financial position, independent verification and stress testing are advisable.