LITTLE ADVENTURES PLAY CAFE DEVON LTD

Executive Summary

Little Adventures Play Cafe Devon Ltd is a newly established private limited company with a high risk profile due to negative net current assets and minimal equity. While compliant with filing obligations and showing initial asset investment, the company faces significant liquidity challenges and limited operational history, warranting careful scrutiny of its financial strategy and market prospects before investment consideration.

LITTLE ADVENTURES PLAY CAFE DEVON LTD - Analysis Report

Company Number: 14720174

Analysis Date: 2025-07-29 18:03 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to negative net current assets, indicating liquidity challenges. As a newly incorporated entity with limited operating history and minimal equity, its ability to meet short-term obligations is constrained.

2. Key Concerns:

• Liquidity Deficit: Current liabilities (£19,539) exceed current assets (£10,102) by £9,437, showing a working capital deficiency that could impair day-to-day operations and creditor payments.
• Limited Operational History: Incorporated in March 2023, the company has less than one full financial year of trading, limiting visibility on sustainable revenue generation and profitability.
• Minimal Equity Base: Shareholders’ funds are only £2,496, with a nominal share capital of £1, indicating a limited capital buffer to absorb losses or finance growth.

3. Positive Indicators:

• No Overdue Filings: The company is current on both accounts and confirmation statement filings, suggesting compliance with Companies House requirements.
• Owner-Operator Control: The sole director and 75-100% shareholder, Mrs. Jenna Scholz, appears engaged and responsible, which can facilitate swift decision-making.
• Tangible and Intangible Asset Investment: The company has invested in fixed assets totaling approximately £11,933, including intangible assets of nearly £4,000, indicating some commitment to establishing operational infrastructure.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to assess urgency and potential refinancing risks.
• Obtain detailed cash flow forecasts and revenue projections to evaluate the company’s plan to address the negative working capital position.
• Review any supporting financial arrangements, such as director loans or external financing, not visible in the abridged accounts.
• Assess the business model and market positioning within the unlicensed restaurant and café sector (SIC 56102) to understand competitive risks.
• Confirm there are no undisclosed related party transactions or contingent liabilities that could exacerbate financial strain.