Company Number: 14366867

Analysis Date: 2025-07-29 14:03 UTC

1. Risk Rating: MEDIUM
   The company shows a modest net asset base and shareholder funds, with some improvement year-on-year. However, current liabilities consistently exceed current assets, raising liquidity concerns. The micro-entity size and short operational history limit the depth of financial data.

2. Key Concerns:

• Negative net current assets (£56k deficit in 2024) suggest potential short-term liquidity stress, as current liabilities exceed current assets.
• Relatively small net assets (£43k in 2024) and limited fixed assets could constrain the company’s ability to absorb shocks or invest in growth.
• The company is newly incorporated (2022) and operates in the licensed restaurant sector, which can be highly competitive and sensitive to economic cycles, increasing operational risk.

3. Positive Indicators:

• Shareholders funds have increased significantly from £13k in 2023 to £43k in 2024, indicating some capital injection or retained earnings strengthening equity.
• The company has not missed any filing deadlines, with accounts and confirmation statements up to date, suggesting compliance with regulatory requirements.
• Employment has increased from 8 to 10 staff, which could indicate business growth or scaling of operations.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess liquidity risk and any short-term refinancing needs.
• Review cash flow statements and profit & loss accounts (not provided) to evaluate operational cash generation and profitability trends.
• Understand the business model and market positioning within the licensed restaurant sector to assess sustainability and competitive pressures.
• Confirm whether any related party transactions or director loans affect the capital structure.
• Verify whether the increase in shareholders’ funds is due to new equity or retained profits for a clearer picture of financial health.