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.