Company Number: 13143994

Analysis Date: 2025-07-20 16:25 UTC

1. Risk Rating: HIGH
   The company shows a deteriorating financial position with negative net assets and net current liabilities as of the last reported year, indicating solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets: Shareholders’ funds have declined from positive £4,420 in 2023 to negative £731 in 2024, signaling erosion of equity and potential insolvency.
• Working Capital Deficit: Net current liabilities of £8,547 suggest the company may struggle to meet short-term obligations without additional financing or asset liquidation.
• Declining Fixed Assets and Current Assets: Fixed assets decreased from £12,619 to £7,816 and current assets dropped significantly, which may reflect asset disposals or poor operational cash flow management.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, reflecting good governance and regulatory compliance.
• Stable Directorship: Both directors have remained in post since incorporation, which may indicate stable management.
• Growing Workforce: The average number of employees increased from 3 to 5, suggesting some operational expansion or investment in human capital.

4. Due Diligence Notes:

• Investigate the reasons behind the significant drop in net assets and current assets between 2023 and 2024, including any extraordinary expenses or impairments.
• Review cash flow statements and bank facilities to assess liquidity position in more detail.
• Examine the business model and market conditions affecting the unlicensed restaurant and café sector to evaluate sustainability.
• Confirm no undisclosed contingent liabilities or related party transactions that may impact financial health.
• Assess directors’ plans or strategies to restore positive equity and improve working capital.