Company Number: SC734785

Analysis Date: 2025-07-20 13:12 UTC

1. Risk Rating: MEDIUM
   Suzie Walker Catering Ltd demonstrates modest net assets and positive working capital, indicating an ability to meet short-term liabilities. However, the rapid increase in current liabilities and accruals within a single year, coupled with limited financial history due to recent incorporation, suggests potential liquidity and operational risks that warrant close monitoring.

2. Key Concerns:

• Rising Current Liabilities: Current liabilities increased from £10,280 in 2023 to £54,041 in 2024, a more than fivefold rise, which may indicate cash flow pressure or increased short-term obligations.
• Significant Increase in Accruals and Deferred Income: Accruals rose sharply from £1,001 to £8,806, potentially reflecting upcoming expenses or liabilities not yet settled.
• Limited Operating History and Scale: Incorporated in mid-2022, the company has a brief track record and is classified as a micro-entity, limiting the availability of comprehensive financial data to assess long-term sustainability.

3. Positive Indicators:

• Positive Net Current Assets and Net Assets: Despite increases in liabilities, net current assets and net assets remain positive (£26,258 and £17,954 respectively as of June 2024), supporting solvency.
• Growth in Current Assets: Current assets increased substantially from £28,977 in 2023 to £80,299 in 2024, indicating accumulation of liquid resources or receivables.
• No Overdue Filings or Compliance Issues: Accounts and confirmation statements are filed on time, demonstrating regulatory compliance and good governance practices.
• Employment Growth: The average number of employees grew from zero to five within the year, evidencing business expansion.

4. Due Diligence Notes:

• Investigate the nature and timing of the current liabilities increase to assess if these are trade payables, short-term loans, or other obligations impacting liquidity.
• Clarify the composition of accruals and deferred income to determine if they represent contingent liabilities or deferred revenue.
• Review cash flow statements and bank reconciliations (if available) to evaluate actual liquidity and operational cash generation.
• Assess client contracts and revenue streams given the catering industry (SIC 56210) to understand business sustainability and seasonality impacts.
• Confirm the absence of any director disqualifications or adverse governance records given the company’s young age.