Company Number: 15588242

Analysis Date: 2025-07-20 11:22 UTC

1. Risk Rating: HIGH
   The company shows significant solvency and liquidity concerns, with negative net current assets and net liabilities within its first financial period. The financial position indicates an inability to meet short-term obligations without additional capital infusion.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£15,568) substantially exceed current assets (negative £3,397), resulting in a working capital deficit of £18,965. This signals immediate liquidity stress.
• Negative Shareholders’ Funds: Equity is negative at £965, reflecting accumulated losses exceeding the small share capital (£100). This undermines financial stability and raises solvency doubts.
• Negative Stock Value: The balance sheet reports stocks at negative £4,000, which is unusual and may indicate accounting error or write-downs, requiring clarification.

3. Positive Indicators:

• Fixed Assets Presence: Tangible fixed assets valued at £18,000 provide some asset backing, although these are depreciating and may not be readily liquidated.
• Recent Incorporation and Compliance: The company was incorporated in March 2024 and has filed accounts and confirmation statements on time, indicating compliance with statutory requirements and no overdue filings.
• Sole Director and PSC Alignment: The director and person with significant control are the same individual, potentially allowing for streamlined decision-making and control.

4. Due Diligence Notes:

• Investigate the cause and accounting treatment of negative stock value to ascertain if this reflects an error or impairment issue.
• Review cash flow projections and planned liquidity management to understand how the company intends to address the working capital deficit and negative equity.
• Assess the business plan and revenue generation prospects given this is a new company in the take-away food sector, including market positioning and customer acquisition strategy.
• Confirm the background and financial resources of the sole director/PSC to evaluate support capacity in case of funding needs.
• Verify related party transactions or loans that might not be fully disclosed but impact liabilities or assets.