Company Number: 14672788

Analysis Date: 2025-07-29 13:56 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to its extremely limited net assets (£87) and a negative net working capital position (current liabilities exceed current assets by £7,662). This indicates potential difficulties in meeting short-term obligations.

2. Key Concerns:

• Liquidity Shortfall: Current liabilities of £10,376 far exceed current assets of £2,714, suggesting cash flow constraints and potential insolvency risk if liabilities must be settled imminently.
• Minimal Equity Base: Shareholders’ funds stand at only £87, providing negligible buffer against losses or unexpected expenses.
• Newly Incorporated with Limited Operating History: Incorporated in February 2023, with only one set of micro-entity accounts filed, limiting visibility into operational sustainability or revenue generation.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time with no overdue status, indicating compliance with regulatory obligations.
• Single Director and PSC Alignment: Director and 75-100% controlling shareholder are the same person, potentially enabling swift decision-making and aligned governance.
• Micro Entity Status: The company benefits from simplified accounting requirements, reducing administrative burden in early stages.

4. Due Diligence Notes:

• Cash Flow Analysis: Review detailed cash flow statements or bank statements to assess actual liquidity and funding sources.
• Business Model Viability: Investigate trading history, revenue streams, and customer base to evaluate operational sustainability in the unlicensed restaurant and café sector.
• Director Background: Although no disqualifications are noted, further inquiry into the director’s experience and financial standing may be prudent given the minimal equity and liquidity concerns.
• Creditors and Payment Terms: Clarify nature and terms of current liabilities to assess urgency and potential for renegotiation.