Company Number: 13230886

Analysis Date: 2025-07-20 12:52 UTC

1. Risk Rating: HIGH
   The company shows a significant and growing negative net current assets and net liabilities position, which indicates serious solvency concerns despite being classified as a micro-entity. The current liabilities far exceed current assets by over £1.6 million as of the latest accounts, which is a critical red flag for meeting short-term obligations.

2. Key Concerns:

• Severe Liquidity Deficit: Current liabilities (£1,677,770) greatly surpass current assets (£22,850), resulting in a large negative net current asset figure (-£1,648,010). This suggests the company may struggle to meet its immediate debts.
• Negative Net Assets and Shareholders’ Funds: The company’s net assets and shareholders’ funds are negative (£1,645,320), implying insolvency on a balance sheet basis.
• Small Scale with High Financial Risk: Despite being a micro-entity with only one employee and minimal fixed assets, the company carries substantial liabilities, raising questions about the sustainability of its operations and funding sources.

3. Positive Indicators:

• Compliance with Filings: No overdue accounts or confirmation statements indicate the company is meeting its statutory filing obligations on time, reflecting good governance adherence in this aspect.
• Active Website and VAT Registration: The company operates an active website and holds a VAT number, suggesting engagement in trading activities and compliance with tax registration requirements.
• Stable Directorship: A single director has maintained continuous appointment since incorporation, which may imply consistent management oversight.

4. Due Diligence Notes:

• Investigate the nature and maturity of the company’s current liabilities to understand if they are short-term debts, loans, or trade payables and their repayment terms.
• Review cash flow statements or management accounts (if available) to assess actual liquidity and ongoing operational cash generation or reliance on external funding.
• Clarify the business model and revenue streams under the SIC codes (food services and wholesale of food products) to assess operational sustainability given the discrepancy between scale and liabilities.
• Explore the reasons behind the negative equity position and whether any restructuring, refinancing, or capital injections are planned or underway.
• Confirm if any related-party transactions or contingent liabilities exist that could affect financial stability.