Company Number: 12924457

Analysis Date: 2025-07-20 12:03 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in net assets and working capital in the latest financial year, moving from positive net assets of £7 in 2022 to negative net assets of £6,167 in 2023. The net current liabilities position of £14,820 indicates potential liquidity stress, raising concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets and Working Capital: The shift to negative equity and net current liabilities signals solvency risks and potential financial distress.
• Low Share Capital: With only £2 in share capital, the company has minimal equity buffer to absorb losses.
• Unchanged Employee Numbers with Increased Liabilities: Maintaining 4 employees despite worsening financials may pressure cash flow further, coupled with no indication of revenue growth or improved asset base.

3. Positive Indicators:

• Compliance with Filing Deadlines: Accounts and confirmation statements are up to date with no overdue filings, which reflects good governance in statutory compliance.
• Stable Directorship and PSC Transparency: The two directors and persons of significant control are clearly documented with no red flags such as disqualifications or governance issues.
• Business Classification and Activity: The company operates in event catering and retail food sectors, which can offer diverse revenue sources if managed effectively.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net assets and the increase in current liabilities—whether due to increased borrowings, unpaid creditors, or other liabilities.
• Review cash flow statements and profitability trends to assess operational viability and funding requirements.
• Confirm the company’s ongoing trade status and ability to service debts given its micro-entity size and limited capital.
• Examine any related-party transactions or contingent liabilities not evident in the basic financial data.