Company Number: 13952368

Analysis Date: 2025-07-20 11:14 UTC

1. Risk Rating: HIGH
   The company demonstrates persistent net liabilities and negative shareholder funds over the last three reported years, indicating solvency challenges. Although current assets exceed current liabilities in 2024, the overall net position remains negative. The micro-entity status and lack of audited accounts limit financial transparency, adding to risk concerns.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities stood at £50 at the last reporting date, though improved from a deficit of £8,331 previously, indicating ongoing capital deficiency.
• Persistent Negative Shareholders’ Funds: Shareholder equity remains negative since inception, suggesting accumulated losses or inadequate capital injection.
• Limited Financial Transparency: Exemption from audit under micro-entity provisions means financial statements may lack detailed scrutiny, increasing uncertainty on financial health and operational sustainability.

3. Positive Indicators:

• Improved Working Capital: Net current assets improved significantly from £5,311 in 2023 to £14,947 in 2024, indicating better short-term liquidity management.
• Current Filing Compliance: No overdue filings or confirmation statements were noted, reflecting good regulatory compliance.
• Active Website and Operational Presence: Website data and contact points suggest the business is operational in the take-away food sector, with nine employees, indicating some scale and ongoing activity.

4. Due Diligence Notes:

• Review Detailed Profit & Loss Data: The P&L account was not filed; obtaining this is critical to assess profitability and cash flow trends.
• Investigate Source of Funding and Capital Structure: Clarify how negative equity is being addressed and whether there are any contingent liabilities or related party transactions.
• Assess Cash Flow Position and Debt Terms: Verify cash flow sufficiency to meet liabilities given the negative net assets and closely review creditor arrangements, especially amounts falling due after one year.
• Confirm Director Stability and Governance: Both original directors resigned early; only one remains. Understand implications on governance and operational control.
• Validate Business Model Viability: Given the micro-entity status and losses, assess market position and sustainability of the take-away food operation.