Company Number: 15055327

Analysis Date: 2025-07-29 12:59 UTC

1. Risk Rating: HIGH

   Justification: SLAMS Limited exhibits a precarious financial position with significant net current liabilities and negative shareholders’ funds within its first financial period. The company's current liabilities substantially exceed current assets by £51,556, indicating liquidity challenges. The negative equity position (-£409) further signals solvency concerns, which are heightened by director loans amounting to £43,592, suggesting dependency on related-party financing.

2. Key Concerns:

   • Liquidity Risk: Net current liabilities of £51,556 indicate that the company may struggle to meet short-term obligations without additional financing or improved cash flow.

   • Solvency Risk: Negative shareholders’ funds (-£409) and minimal positive net assets (£661) raise questions about the company’s ability to sustain operations without external support.

   • Dependency on Directors: The substantial amount owed to directors (£43,592) reflects reliance on director advances for ongoing operations, which may not be sustainable long-term and could pose governance or conflict-of-interest issues.

3. Positive Indicators:

   • Compliance: The company is up to date with its filing obligations (accounts and confirmation statement are current and not overdue).

   • Operational Activity: Employing 12 people within the first financial period suggests active business operations consistent with its SIC code (unlicensed restaurants and cafes).

   • No Indications of Formal Distress: The company is not in liquidation, administration, or receivership and remains active since incorporation in August 2023.

4. Due Diligence Notes:

   • Cash Flow Analysis: Obtain detailed cash flow statements to assess the company’s ability to generate operational cash and meet short-term liabilities.

   • Director Loan Terms: Review the nature, terms, and repayment plans of the director loans to understand risk exposure and potential calls on directors’ personal finances.

   • Business Plan and Revenue Trajectory: Evaluate management’s strategy to address current liabilities and move towards profitability and positive equity.

   • Related Party Transactions: Investigate any potential conflicts or guarantees related to director advances.

   • Market Position: Understand competitive positioning and customer base in the unlicensed restaurant/café sector to assess revenue stability.