SFC CORNER LTD

Executive Summary

SFC CORNER LTD is a micro-entity operating in the food service sector with modest financial resources and a thin equity base. The company maintains adequate short-term liquidity but carries significant long-term creditor obligations relative to net assets, introducing moderate solvency risk. Regulatory compliance is current, but further due diligence on cash flows and creditor terms is advisable to fully assess operational sustainability.

SFC CORNER LTD - Analysis Report

Company Number: 13224461

Analysis Date: 2025-07-29 20:20 UTC

1. Risk Rating: MEDIUM
   The company's financial data indicates modest net assets and a low level of share capital, with a relatively high proportion of creditors due after more than one year. While it is currently solvent, the limited equity base and long-term liabilities pose moderate solvency risk.

2. Key Concerns:

• Leverage and Long-Term Creditors: Significant amounts of creditors due after more than one year (£28,117 in 2024) compared to net assets (£5,036) may stress solvency if cash flows weaken.
• Limited Share Capital and Equity Buffer: Share capital of only £2 and modest net assets suggests a thin capital base, limiting the company’s ability to absorb losses.
• Minimal Workforce and Scale: One employee on average indicates a very small operational scale, which may limit business resilience and growth capacity.

3. Positive Indicators:

• Improving Net Assets: Net assets increased from £3,131 in 2023 to £5,036 in 2024, showing some strengthening of the balance sheet.
• Current Assets Exceed Current Liabilities: Positive net current assets (£2,983 in 2024) suggest short-term liquidity is adequate.
• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements.

4. Due Diligence Notes:

• Review the nature and terms of the long-term creditors to assess repayment schedules, interest obligations, and covenant risks.
• Assess cash flow statements and profit & loss accounts (not provided) to understand operational cash generation and sustainability.
• Investigate any contingent liabilities or off-balance sheet items that might affect financial stability.
• Confirm the business model viability given the small scale and investigate plans for growth or capital injection.
• Validate director background and governance practices, noting both directors reside at the same address and one is also a person with significant control.