Company Number: 14156880

Analysis Date: 2025-07-29 16:43 UTC

1. Risk Rating: HIGH
   The company has transitioned from positive net assets in 2023 (£7,805) to significant net liabilities in 2024 (-£28,771). This sharp deterioration indicates solvency issues, as liabilities now exceed assets substantially.

2. Key Concerns:

• Negative Net Assets: The company’s balance sheet shows a reversal from net assets to net liabilities within one year, signaling potential insolvency risk.
• Working Capital Deficit: Current liabilities (£58,687) exceed current assets (£11,323) by a large margin, indicating liquidity problems and an inability to meet short-term obligations.
• Lack of Profit or Equity Growth: Fixed assets remain constant, but there is no evidence of retained earnings or capital injection to offset losses, raising concerns about operational sustainability.

3. Positive Indicators:

• No Overdue Filings: The company is current on statutory accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Stable Employee Base: The company maintains an average of 5 employees, suggesting some operational continuity despite financial challenges.
• Established Business Activity: The company operates as a licensed restaurant (SIC 56101), which is a viable sector, assuming competent management and market conditions.

4. Due Diligence Notes:

• Investigate Causes of Financial Decline: Review detailed management accounts, cash flow statements, and trading performance to understand the drivers behind the negative net asset position.
• Assess Directors’ Plans: Obtain insight into the board’s strategy to restore financial health, including capital injections, cost controls, or restructuring efforts.
• Review Creditors and Debts: Scrutinize the composition and terms of current liabilities to evaluate imminent repayment pressures and risks of default.