PE CHEF TAKEAWAY LIMITED

Executive Summary

PE CHEF TAKEAWAY LIMITED shows early signs of financial distress with negative net assets despite positive working capital. Immediate focus on improving profitability, managing liabilities, and strengthening the capital base is essential to restore financial health. With timely interventions, the company can stabilize and improve future outlook.

PE CHEF TAKEAWAY LIMITED - Analysis Report

Company Number: 13263585

Analysis Date: 2025-07-20 13:39 UTC

Financial Health Assessment: PE CHEF TAKEAWAY LIMITED

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1. Financial Health Score: C

Explanation:
The company exhibits some concerning signs in its latest financial year, namely a negative net asset position, indicating financial strain. However, current assets still exceed current liabilities, suggesting some short-term liquidity. The drop from positive net assets in prior years to negative in the latest year signals emerging financial distress but not yet critical failure.

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2. Key Vital Signs

Metric	2024 (Latest Year)	Interpretation
Current Assets	£1,271	Limited cash and receivables, reduced from £2,188 the prior year; indicates shrinking liquidity "fuel".
Current Liabilities	£634	Short-term debts to be paid soon; decreased slightly but still substantial relative to assets.
Net Current Assets (Working Capital)	£637	Positive working capital, meaning short-term obligations can be met by liquid assets; "healthy pulse" in liquidity.
Net Assets / Shareholders' Funds	£-383	Negative equity; liabilities exceed total assets after accounting for accruals, a "symptom of financial distress".
Accruals and Deferred Income	£1,020	Significant deferred liabilities, worsening net asset position.
Share Capital	£1	Minimal capital base; company relies on retained earnings or external financing.
Employees	3 (average)	Small workforce consistent with micro-entity status.

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3. Diagnosis

PE CHEF TAKEAWAY LIMITED has shown a deterioration in its financial health over the past year. The critical symptom is the swing from positive net assets (£376 in 2023) to negative net assets (£-383 in 2024), indicating that the company’s total liabilities now exceed its total assets, a red flag akin to "organ failure" in financial terms.

Despite this, the company maintains positive working capital, showing it has enough short-term assets to cover immediate liabilities. This is a "stable heartbeat" indicating that, for now, it can meet day-to-day obligations without liquidity crisis. However, the large accruals and deferred income figure (£1,020) is a concern, as it adds to the burden of future liabilities.

The decrease in current assets and increase in net liabilities could be due to operating losses, cash usage, or increased short-term obligations. Without profit and loss figures (not filed due to micro-entity exemptions), the exact cause cannot be pinpointed, but the trend suggests operational challenges or cash flow stress.

The minimal share capital and small workforce are consistent with a micro-sized takeaway business but offer limited buffer against financial shocks.

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4. Recommendations

• Improve Profitability and Cash Flow: The company should focus on boosting sales, controlling costs, and improving margins to rebuild retained profits and reverse the negative equity trend.
• Manage Liabilities: Review terms of accruals and deferred income to negotiate better payment schedules or reduce these obligations where possible.
• Strengthen Capital Base: Consider injecting additional equity or seeking financing to restore positive net assets and improve financial resilience.
• Regular Monitoring: Implement monthly cash flow forecasts and financial reviews to catch emerging problems early — like monitoring vital signs regularly in a patient.
• Seek Professional Advice: Engage with an accountant or business advisor to explore restructuring options and tax efficiencies.
• Operational Efficiency: Evaluate staffing and operational costs against revenue to optimize the small team and maintain lean operations.

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