Company Number: 14191390

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

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to persistent and significant negative net assets and net current liabilities. Despite being active for a short period since incorporation in 2022, it has accumulated substantial losses and owes large sums to directors, indicating solvency concerns.

2. Key Concerns:

• Solvency Risk: Negative shareholders’ funds of £75,160 as of June 2024 (down from £130,354 in 2023) and net current liabilities of £95,627 suggest the company does not have sufficient assets to cover its liabilities. This presents a material risk to creditors and investors regarding the company’s ability to meet obligations as they fall due.
• Director Loans: The current liabilities largely consist of loans from directors (£143,176), which, while potentially flexible, represent a significant reliance on insider financing and may not be sustainable or sufficient in a stress scenario.
• Operating Scale and Cash Flow: The company is small (3 employees) and in a challenging sector (food services and catering), with limited cash reserves (£38,502). Negative working capital and continued losses indicate cash flow pressures that could impair operational stability.

3. Positive Indicators:

• No Filing or Compliance Issues: All accounts and confirmation statements are filed on time with no overdue filings, indicating regulatory compliance and good governance in that respect.
• Tangible Fixed Assets Growth: Tangible fixed assets increased from £3,672 to £20,467, suggesting some investment in operational capacity or equipment that could support future revenue generation.
• Established Director: The same director (H Y Fong) oversees the company, which may indicate consistent management, albeit with limited data on business strategy or track record.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans: Are these loans repayable on demand? Are they secured? What is the risk of these funds being withdrawn suddenly?
• Review cash flow forecasts and business plans to assess how the company intends to return to profitability and positive net assets.
• Examine the revenue generation and customer base given the industry classification (food service, catering, licensed restaurant) to understand market positioning and sustainability.
• Clarify why the profit and loss account was not delivered to the Registrar, as this could limit insight into operational performance.
• Consider potential contingent liabilities or off-balance-sheet exposures not reflected in current filings.