Company Number: NI691424

Analysis Date: 2025-07-29 16:05 UTC

1. Risk Rating: HIGH
   The company shows a persistent negative working capital position and a recent history of negative shareholders funds, indicating solvency risks. Although there is improvement in the latest year, net current liabilities remain, and the company is still in a fragile financial state given its short operating history.

2. Key Concerns:

• Negative Net Current Assets: The company has net current liabilities of £7,896 as of the latest year, although improved from £37,057 negative the previous year, indicating ongoing liquidity pressure.
• Negative Shareholders Funds in Prior Years: The company had negative equity of £16,027 in prior years, pointing to accumulated losses and potential solvency concerns, only recently turning positive (£9,744).
• Limited Operating History: Incorporated in late 2022 with only two years of financial data, the company’s operational sustainability is unproven, increasing uncertainty around future performance.

3. Positive Indicators:

• Recent Improvement in Financial Position: The company moved from negative shareholders funds and net current assets to positive shareholders funds, which may indicate better management or operational improvements.
• No Overdue Filings: Both accounts and confirmation statements are up to date, reflecting compliance with statutory filing requirements.
• Stable Ownership and Management: Single director and 100% shareholder Andrea Smith, suggesting clear accountability and streamlined decision-making.

4. Due Diligence Notes:

• Investigate the causes of prior accumulated losses and the steps taken to achieve recent improvements in equity.
• Review cash flow statements and bank arrangements to assess liquidity management and ability to meet short-term obligations.
• Assess the business model viability in the take-away food sector, including customer base, competition, and growth strategy given the company’s micro size and limited history.
• Confirm no undisclosed contingent liabilities or related party transactions that could affect financial stability.
• Verify director’s background and any potential related party risks given sole control.