Company Number: 13547646

Analysis Date: 2025-07-20 17:26 UTC

1. Risk Rating: LOW
   The company demonstrates solid net current assets, positive shareholders' funds, no overdue filings, and stable cash reserves, indicating a low risk of insolvency or liquidity issues.

2. Key Concerns:

• Trade creditors have increased significantly from £12,386 to £22,837 in one year, which may warrant monitoring to ensure supplier relationships are stable and payment terms are manageable.
• Reduction in tangible fixed assets net book value from £43,221 to £34,102 suggests depreciation outpacing investment; potential need for capital expenditure to maintain operational capacity.
• The company operates with a relatively small number of employees (10) and is in a competitive restaurant sector, which may impose operational risks related to labor and market conditions.

3. Positive Indicators:

• Consistent increase in net current assets (£59,549 in 2021 to £94,239 in 2024) and shareholders' funds (£105,887 to £128,341) reflects financial stability and retained profitability.
• Strong cash position (£123,518 as at 31 August 2024) relative to current liabilities (£44,236) underlines good liquidity and ability to meet short-term obligations.
• No overdue accounts or confirmation statements, demonstrating compliance with regulatory filing requirements.
• Ownership and control are well defined among multiple significant controllers, reducing concentration risk.

4. Due Diligence Notes:

• Review detailed income statement and cash flow statements (not filed publicly) for profitability trends and cash generation to confirm operational sustainability.
• Investigate the nature and terms of increased trade creditors to assess if this reflects normal business growth or potential cash flow pressures.
• Verify plans regarding fixed asset maintenance or replacement given depreciation charges exceed additions.
• Confirm no undisclosed contingent liabilities or off-balance sheet obligations exist.
• Evaluate market positioning and competitive strategy given the restaurant industry’s volatility and relatively small scale of operations.