Company Number: 13799727

Analysis Date: 2025-07-29 16:43 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk as evidenced by persistent negative net assets and net current liabilities growing worse over the last two years. The working capital deficit and negative equity suggest the company does not currently have sufficient resources to meet its short-term or long-term obligations.

2. Key Concerns:

• Negative Net Assets and Equity: The company’s net liabilities increased from -£8,878 in 2022 to -£18,440 in 2023, indicating a deteriorating financial position and accumulated losses eroding shareholder funds.
• Negative Working Capital: Current liabilities exceed current assets by £28,160 in 2023, indicating potential liquidity issues and difficulty in covering short-term debts.
• Lack of Profit and Loss Disclosure: As a micro-entity filing under FRS 105, no profit and loss account is filed, limiting insight into operational profitability or cash flow generation to assess ongoing sustainability.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with account and confirmation statement filings, suggesting regulatory compliance and absence of immediate governance concerns.
• Stable Management: The sole director holds significant control and is consistent since incorporation, which could provide operational continuity.
• Micro-Entity Status: Being a micro company limits reporting requirements and may indicate a small-scale operation with potentially lower overheads.

4. Due Diligence Notes:

• Investigate Operational Cash Flows: Obtain internal management accounts or cash flow statements to assess if the company can generate sufficient cash to service liabilities and sustain operations.
• Assess Reason for Losses: Understand the underlying causes of the negative equity—whether from ongoing operating losses, one-off charges, or investment write-downs.
• Review Funding Arrangements: Check if there are any shareholder loans, director advances, or external financing that support the company’s liquidity position currently unreflected in the balance sheet.
• Examine Business Model Viability: Given the SIC code 56290 (Other food services), evaluate the company’s market position and operational strategy to determine sustainability prospects.