Company Number: SC705251

Analysis Date: 2025-07-20 16:40 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with persistent negative net current assets and shareholders' funds over multiple years, indicating an ongoing erosion of financial stability.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities exceed current assets by £61,919 as of 31 March 2024, reflecting potential short-term liquidity difficulties.
• Persistent Negative Shareholders' Funds: Negative equity of £22,832, though improved from prior years, suggests accumulated losses and weakened capital base.
• High Financial Commitments: The company has outstanding commitments, guarantees, and contingencies totaling £100,416, which may strain cash flow given current asset and liability figures.

3. Positive Indicators:

• Stable Director and Ownership: The sole director and 100% shareholder, Mr. Ram Cohen, is consistent and local, which may imply committed leadership.
• No Overdue Filings: The company is current with its accounts and confirmation statement filings, demonstrating compliance with regulatory requirements.
• Employment Growth: The average number of employees increased from 5 to 8 during the year, indicating some operational expansion.

4. Due Diligence Notes:

• Investigate the nature and timing of the company’s liabilities and financial commitments to assess cash flow pressures and potential refinancing needs.
• Review the business model sustainability in the competitive retail and manufacturing bakery sector given current financial strain.
• Obtain management accounts or cash flow forecasts to verify if the company can meet short-term obligations and return to profitability.
• Confirm whether the company has any off-balance-sheet liabilities or related party transactions that may impact financial health.