Company Number: 12617298

Analysis Date: 2025-07-20 18:08 UTC

1. Risk Rating: MEDIUM
   While NIPPY CHIPPY LTD shows positive net assets and working capital, the presence of long-term creditors and a recent increase in liabilities raise moderate concerns about solvency and liquidity stability. The company is small and relatively young, which adds some operational risk.

2. Key Concerns:

• Long-term liabilities of £45,393 appearing in 2024, which were not present in 2023, may indicate increased debt burden or financial restructuring that could impact solvency.
• Net assets decreased slightly from £38,927 in 2023 to £37,762 in 2024, suggesting limited retained earnings or profitability pressures.
• The company operates in a competitive take-away food sector with a small scale (micro-entity) and limited financial disclosure, which could constrain operational resilience and growth.

3. Positive Indicators:

• The company maintains positive net current assets (£44,112 in 2024), indicating short-term liquidity appears adequate to meet immediate obligations.
• Shareholder funds remain positive and relatively stable, reflecting some retained capital and equity backing.
• No overdue filings or compliance issues noted; accounts and confirmation statements are up to date, showing good regulatory adherence.
• The director is actively involved with no disqualifications or resignations since 2022, suggesting stable governance.

4. Due Diligence Notes:

• Clarify the nature and terms of the long-term liabilities introduced in 2024 to assess repayment risks and impact on cash flow.
• Review recent profit and loss performance (not provided) to understand operational profitability and cash generation.
• Investigate customer base and competitive positioning in the take-away food industry to assess business sustainability.
• Confirm absence of any contingent liabilities or off-balance sheet risks not visible in the micro-entity accounts.
• Assess management experience and strategy for growth or risk mitigation given the small size and early stage of the company.