Company Number: 14121353

Analysis Date: 2025-07-29 14:24 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets and net current assets across three consecutive years, indicating persistent insolvency and an inability to cover short-term liabilities with current assets. Such a financial position raises significant solvency concerns.

2. Key Concerns:

• Persistently Negative Net Assets: The company has reported net liabilities of approximately £4,815 to £5,823 since incorporation, suggesting accumulated losses or insufficient capital injection.
• Negative Working Capital: Net current liabilities indicate a liquidity shortfall that may impair the company's ability to meet immediate obligations.
• No Employees and Limited Financial Disclosure: The absence of employees and minimal financial data (micro-entity filing) limit visibility into operational capacity and revenue generation, raising questions on business sustainability.

3. Positive Indicators:

• Compliance With Filing Requirements: The company is current with both accounts and confirmation statement filings, demonstrating regulatory compliance and governance discipline.
• Single Director and PSC Alignment: The director and sole person with significant control are the same individual, potentially facilitating streamlined decision-making.
• Established Business Activity: SIC classification indicates active engagement in take-away food shops and mobile food stands, a sector with accessible market entry.

4. Due Diligence Notes:

• Investigate Causes of Negative Equity: Review detailed financial statements or management accounts to understand loss drivers, capital structure, and whether losses are operational or investment-related.
• Assess Cash Flow and Funding Sources: Determine how the company is financing operations given negative working capital—e.g., director loans, shareholder funding, or external credit.
• Confirm Operational Status and Revenue Streams: Verify if the business is operational, generating revenue, and the sustainability of the business model given the lack of employees and persistent losses.
• Examine Director’s Plans and Financial Support: Understand the director’s commitment to turning around the financial position or plans for restructuring.