Company Number: 13805114

Analysis Date: 2025-07-29 20:05 UTC

1. Risk Rating: HIGH

The company exhibits signs of significant financial distress as of the latest financial year, notably a material deterioration in net assets and a large increase in liabilities.

2. Key Concerns:

• Negative Net Assets in 2023: The company reported net assets of -£11,300 at 31 December 2023, a sharp decline from positive net assets of £965 in 2022, indicating insolvency on a balance sheet basis.
• Significant Increase in Creditors: Creditors falling due after more than one year rose markedly to £12,626 in 2023 from £6,730 in 2022, highlighting increased long-term obligations that could strain cash flow.
• Declining Current Assets and Working Capital: Current assets dropped from £7,695 in 2022 to £1,326 in 2023, with net current assets similarly declining, raising concerns about liquidity to meet short-term liabilities.

3. Positive Indicators:

• Timely Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings, suggesting regulatory compliance and governance diligence.
• Consistent Employment Level: The company maintained an average of 4 employees over the last two reported years, indicating operational continuity.
• Majority Control by a Single Director: The sole director and 75-100% shareholder, Mr. Hogir Osman Mawlod, suggests clear decision-making authority, which may facilitate swift strategic actions.

4. Due Diligence Notes:

• Examine Underlying Causes for Deterioration: Investigate reasons behind the sharp increase in creditors and negative net assets in 2023, including whether this reflects accumulated losses, new borrowing, or accounting adjustments.
• Review Cash Flow and Profitability Trends: Assess recent profit and loss data, cash flow statements, and any potential contingent liabilities or off-balance sheet commitments.
• Evaluate Director and Related Party Transactions: Given sole ownership and control, confirm if related party transactions or director loans have affected financial stability.
• Verify Continuity of Operations: Confirm that the company is actively trading as a take-away food business, and assess its revenue generation and market position.
• Assess Potential for Insolvency or Restructuring: Given negative equity, determine if any insolvency risks or restructuring plans are in place.