Company Number: 13792132

Analysis Date: 2025-07-20 16:38 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity stress evidenced by negative net current assets exceeding £100k for the latest year, combined with minimal net equity. The negative working capital and erosion of shareholders' funds from £3,744 to £101 in one year indicate a solvency risk and operational financial strain.

2. Key Concerns:

• Liquidity Shortfall: Current liabilities of approximately £196k surpass current assets of £93k, resulting in a working capital deficit of over £103k, potentially impeding the company’s ability to meet short-term obligations.
• Eroding Shareholders' Funds: Net assets have declined sharply to £101 in 2023 from £3,744 in 2022, signaling ongoing losses or balance sheet deterioration that may threaten long-term solvency.
• High Lease Obligations: Non-cancellable operating lease commitments total over £217k, with a significant portion due within the next five years, which could pressure cash flow further given the liquidity constraints.

3. Positive Indicators:

• Timely Filings: The company is up to date with accounts and confirmation statements, demonstrating regulatory compliance and good governance in statutory reporting.
• Stable Ownership and Management: Directors and Persons with Significant Control are consistent, with no reported disqualifications or issues, indicating stable leadership.
• Modest Fixed Asset Base: Fixed assets have increased to approximately £109k, which may provide some collateral or operational infrastructure to support the business.

4. Due Diligence Notes:

• Investigate the company’s cash flow forecasts and creditor payment patterns to assess liquidity management and risk of default.
• Review the causes behind the sharp reduction in retained earnings and net assets between 2022 and 2023, including profitability and unusual expenses.
• Examine lease agreements in detail to understand the flexibility or potential financial burden of these commitments.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.
• Assess the company’s business model viability and market conditions for unlicensed restaurants and cafes, especially post-pandemic impacts.