Company Number: 12396010

Analysis Date: 2025-07-20 18:37 UTC

1. Risk Rating: HIGH
   The company exhibits persistent and significant negative net assets and net current liabilities over the last three reported years, indicating a weakened financial position and potential insolvency risk.

2. Key Concerns:

• Solvency Risk: Net assets have deteriorated from positive £16,338 in 2021 to negative £14,679 in 2024, and net current liabilities have increased to approximately £16k, suggesting the company is unable to cover short-term debts with current assets.
• Liquidity Concerns: Current liabilities exceed current assets by a large margin, with no indication of sufficient cash or liquid resources to meet obligations as they fall due.
• Operational Stability: The company’s micro-entity classification combined with a single employee and minimal fixed assets (£1,309) raises questions about the scalability and sustainability of operations in the competitive food services and catering sector.

3. Positive Indicators:

• Compliance: The company is up to date with both accounts and confirmation statement filings, indicating regulatory compliance and good governance in statutory reporting.
• Active Status: The company remains active and has recently appointed a new director, which may suggest ongoing business activity and management engagement.
• Ownership Transparency: Clear identification of persons with significant control (PSCs) with no apparent conflicting interests or disqualifications noted.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities to understand if they are trade payables, loans, or other obligations and assess the likelihood and timing of repayment or refinancing.
• Review cash flow statements and management forecasts (if available) to evaluate short-term liquidity and the business’s ability to generate cash.
• Assess the business model and customer base for sustainability, especially given the significant losses reflected in the negative reserves and net asset position.
• Confirm whether any contingent liabilities or off-balance-sheet arrangements exist, despite the accounts note indicating none.
• Consider the background and experience of the current directors, specifically the involvement and role of the recruitment consultant director in the food services business.