Company Number: 15398219

Analysis Date: 2025-07-29 14:56 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, with net liabilities of £19,659 and negative net current assets of £64,645 as at the most recent reporting date. These indicators suggest an inability to meet short-term obligations and an overall negative equity position within its first year of operation.

2. Key Concerns:

   • Negative Net Assets and Working Capital: The balance sheet reveals net liabilities and a substantial current liabilities excess over current assets, indicating potential liquidity challenges.
   • Newly Incorporated with Limited Financial History: Being incorporated in January 2024 and reporting its first accounts in January 2025, the company has limited operational track record to demonstrate financial stability or successful business execution.
   • Dependence on Directors: Both directors hold significant ownership and voting rights, which may concentrate control and risk, especially given their operational roles (baker and chef) rather than financial expertise.

3. Positive Indicators:

   • Compliance with Filing Deadlines: The company has filed its accounts and confirmation statements on time, demonstrating regulatory compliance and governance discipline.
   • Operating in a Defined Sector: The SIC code 56101 (licensed restaurants) is a well-understood sector, and the company has four employees which suggests some operational activity.
   • Fixed Assets Base: The presence of fixed assets valued at £45,886 could represent investment in operational infrastructure, supporting business continuity.

4. Due Diligence Notes:

   • Examine Cash Flow and Funding Sources: Investigate how the company is financing its negative working capital and whether additional capital injections or credit facilities are in place to sustain operations.
   • Assess Directors’ Backgrounds and Financial Management: Review the directors’ experience in managing financial aspects of a business, given their operational roles and the early-stage financial position.
   • Understand Business Model and Revenue Generation: Clarify the revenue streams, customer base, and growth prospects to evaluate if the current financial position is due to start-up costs or underlying operational issues.