Company Number: 14282653

Analysis Date: 2025-07-29 19:49 UTC

1. Risk Rating: MEDIUM
   The company is a recently incorporated micro-entity operating in the take-away food sector. While it is currently active and compliant with filing requirements, the financials show net current liabilities indicating short-term liquidity pressure. The small scale and negative working capital pose moderate solvency and liquidity risks for investors.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£15,982) exceed current assets (£9,880) by £6,102, highlighting potential cash flow stress.
• Short Operating History: Incorporated in August 2022 with only one year of financial data, limiting assessment of operational stability.
• Concentration of Control: Two individuals (Mr. and Miss Chen) hold 75-100% ownership and voting rights, concentrating decision-making and increasing governance risk.

3. Positive Indicators:

• Compliance with Filings: No overdue accounts or confirmation statements, showing regulatory compliance and management attentiveness.
• Positive Net Assets: Despite working capital deficit, the company reports positive net assets of £3,510, indicating some equity buffer.
• Micro-Entity Status: Small scale reduces complexity and exposure to large operational risks; average one employee suggests low overhead.

4. Due Diligence Notes:

• Cash Flow and Liquidity Details: Investigate cash flows and bank facility availability to understand how short-term liabilities are managed.
• Business Model Viability: Assess revenue streams and customer base given micro size and take-away food sector volatility.
• Director Backgrounds: Review experience and track record of the directors, especially given recent changes and concentrated control.