ONE HUNDRED AND ATE TEA LTD

Executive Summary

One Hundred And Ate Tea Ltd is a newly incorporated micro-entity in the event catering sector, showing positive net assets and compliance with statutory filings. However, its modest working capital and reliance on director loans introduce some liquidity and operational risks common to start-ups. Careful monitoring of cash flow and business development is recommended to better ascertain its financial stability and sustainability.

ONE HUNDRED AND ATE TEA LTD - Analysis Report

Company Number: 14862062

Analysis Date: 2025-07-20 15:50 UTC

1. Risk Rating: MEDIUM
   The company is in its first full financial year with modest net assets and current assets exceeding current liabilities by a relatively small margin. While there are no overdue filings and the business is active, the presence of director loans and modest working capital suggest some potential liquidity and operational risks typical for a start-up.

2. Key Concerns:

• Director Loan Exposure: The company has an unsecured, interest-free loan advanced to the director of £14,179 as at 31 May 2024, which may limit available working capital and indicates reliance on director funding.
• Modest Net Current Assets: Net current assets of £4,441 represent a small buffer to cover short-term liabilities (£20,531), which could be stretched if cash flow issues arise.
• Start-Up Operational Risk: Incorporated in May 2023, the company is in early stages with limited financial history, increasing uncertainty over sustainability and profitability in the event catering sector, which can be competitive and seasonal.

3. Positive Indicators:

• No Filing Delinquencies: Both accounts and confirmation statements are filed on time, indicating good compliance and governance practices to date.
• Positive Net Assets and Working Capital: Despite being a new company, it has positive net assets (£4,757) and net current assets, showing the business is solvent at the balance sheet date.
• Sole Director and Shareholder Control: Centralized control under a single experienced director (also PSC) may enable agile decision-making and cohesive management.

4. Due Diligence Notes:

• Review cash flow statements and forecasts to assess liquidity trends and reliance on director loans or external funding.
• Investigate the terms and repayment plans related to director advances to understand impact on working capital and potential conflicts of interest.
• Assess market positioning, client base, and contracts in the event catering sector to gauge operational sustainability and growth prospects.
• Confirm no contingent liabilities or off-balance sheet exposures that could affect solvency.
• Monitor subsequent filings and financial performance beyond May 2024 to identify emerging risks or improvements.