REALLY TASTY FOODS LTD

Executive Summary

REALLY TASTY FOODS LTD shows signs of capital improvement but continues to face liquidity challenges indicated by negative working capital across years. The company maintains regulatory compliance and stable governance; however, limited public financial disclosure and reliance on fixed assets pose risks to short-term solvency. Further investigation into cash flow and operational profitability is recommended before investment consideration.

REALLY TASTY FOODS LTD - Analysis Report

Company Number: 13923521

Analysis Date: 2025-07-29 19:28 UTC

1. Risk Rating: MEDIUM

Justification: REALLY TASTY FOODS LTD demonstrates positive growth in net assets and shareholders' funds from 2022 to 2025, indicating capital infusion or retained earnings improvements. However, persistent negative net current assets (working capital deficits) over multiple years suggest ongoing liquidity pressures that could impair the company's ability to meet short-term obligations fully. The company is a micro-entity with unaudited accounts and limited disclosure, which restricts comprehensive assessment.

2. Key Concerns:

• Negative Net Current Assets: The company has reported net current liabilities each year, including £(10,932) in 2025, implying current liabilities exceed current assets, a liquidity risk factor.
• Reliance on Fixed Assets: Fixed assets represent a substantial portion of total assets (£141,850 in 2025) but are less liquid, potentially limiting the company's ability to convert assets to cash quickly in a cash flow crisis.
• Limited Financial Disclosure: As a micro-entity filing unaudited accounts under exemptions, there is limited visibility into profitability, cash flow generation, or contingent liabilities, restricting risk evaluation.

3. Positive Indicators:

• Improving Equity Position: Shareholders' funds have increased from £4,132 in 2022 to £130,918 in 2025, indicating strengthening capital base.
• Compliance: The company is current on filing statutory accounts and confirmation statements, indicating good regulatory compliance.
• Stable Management: The sole director, Carl Bradley, has been in place since incorporation, suggesting stable governance continuity.

4. Due Diligence Notes:

• Obtain management accounts or cash flow statements to assess operational liquidity and cash generation capacity.
• Review the nature and liquidity of fixed assets to determine their realizable value.
• Investigate the company’s profitability and margin trends to understand sustainability.
• Confirm no contingent liabilities or off-balance-sheet risks exist.
• Evaluate related party transactions, especially given director ownership and control.
• Verify the company's customer and supplier concentrations given its micro size and industry.