Company Number: SC711620

Analysis Date: 2025-07-20 11:54 UTC

1. Risk Rating: LOW
   Ivanna’s Catering Ltd demonstrates strong solvency and liquidity positions as of the latest accounts dated 31 October 2024. The company has a substantial positive net current assets position and shareholders’ funds, with no overdue filings or indications of financial distress.

2. Key Concerns:

• Deferred Tax Liability: The company holds a significant net deferred tax liability of £23,097 as at 2024, which could impact future cash flows if crystallised.
• Related Party Loan: There is a small but increasing interest-free loan from the director (£832 in 2024 vs £12,453 in 2023), which warrants monitoring for potential financial dependency or informal funding structures.
• Single Director and PSC Control: The company is wholly owned and controlled by a single director (Miss Ivanna Marlene Reeves), which concentrates decision-making and operational risk.

3. Positive Indicators:

• Strong Liquidity: Cash balances rose significantly to £86,947 in 2024 from £4,215 in 2023, providing good short-term liquidity.
• Positive Net Current Assets and Equity Growth: Net current assets improved markedly to £64,172 and shareholders’ funds increased to £64,314, reflecting improved financial health and retained earnings.
• Timely Filing and Compliance: The company’s accounts and confirmation statement are up to date with no overdue reports, indicating good regulatory compliance.
• No Audit Requirement: The company qualifies for audit exemption, consistent with its small size and financial profile.

4. Due Diligence Notes:

• Review the nature and timing of the deferred tax liability to understand its potential impact on future cash flow and tax planning.
• Investigate the director loan terms and any intentions for repayment or ongoing financial support.
• Assess business operations and revenue sustainability, as the company had zero employees on average in the last reported period, which may imply reliance on the director or subcontracted resources.
• Confirm the absence of any undisclosed liabilities or contingent risks not reflected in the accounts.
• Evaluate the business model's scalability and resilience, especially given the single-person control structure and event catering industry risks.