Company Number: 14226406

Analysis Date: 2025-07-20 13:10 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets and net current liabilities deteriorating further in the latest financial year despite being a micro-entity. This signals a high risk of insolvency and inability to meet short-term obligations without additional funding or operational improvements.

2. Key Concerns:

• Negative net assets of £2,108 as of July 2024, worsening from positive equity in prior years.
• Net current liabilities of £5,213 indicate working capital deficiency and liquidity strain.
• Small asset base and minimal current assets (£738), suggesting limited buffer to absorb shocks or cover creditors.

3. Positive Indicators:

• The company is actively filing accounts and confirmation statements on time, indicating regulatory compliance and good governance discipline.
• The business operates in a stable food manufacturing sector (SIC 10710), serving a consistent demand market.
• Recent increase in employee count from zero to two may indicate operational scaling or development.

4. Due Diligence Notes:

• Investigate the causes of the rapid deterioration in net assets and whether this results from losses, write-downs, or other one-off events.
• Review cash flow statements and management plans to assess liquidity management and funding sources.
• Confirm if any creditor arrangements or informal support are in place to manage current liabilities.
• Examine director’s plans for returning to profitability or recapitalisation strategies.
• Assess customer and supplier relationships to gauge operational sustainability.