SWEETSNTREATS01 LTD

Executive Summary

SWEETSNTREATS01 LTD shows steady growth in net assets and maintains a stable cash balance, but negative working capital and increasing creditor balances pose moderate liquidity and solvency risks. Compliance with filing requirements is sound, though the company’s reliance on a single director and shareholder concentrates operational risk. Further investigation into creditor terms and cash flow dynamics is recommended to fully assess financial stability.

SWEETSNTREATS01 LTD - Analysis Report

Company Number: 13804659

Analysis Date: 2025-07-29 20:22 UTC

1. Risk Rating: MEDIUM
   The company demonstrates ongoing operations with improving net assets, yet persistent negative net current assets and a relatively small equity base indicate moderate solvency and liquidity risk. The financial position is fragile but not critical.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities exceed current assets by £1,984 as of 2024 year-end, suggesting potential short-term liquidity pressure.
• Reliance on Director and Single Shareholder: The sole director and 100% owner is Mr. Rizwaan Patel, concentrating operational and ownership risk, which may impact governance and continuity.
• Increasing Creditors: Creditors nearly doubled from £4,069 in 2023 to £6,993 in 2024, which could indicate growing obligations or delayed payments, stressing cash flow.

3. Positive Indicators:

• Improving Net Assets: Shareholders’ funds increased from £90 in 2023 to £550 in 2024, reflecting retained earnings accumulation and asset growth, which is a positive sign.
• Cash Position Stable: Cash balances remain steady (£3,449 in 2023 to £3,509 in 2024), indicating some liquidity buffer despite current liabilities.
• Timely Filing and Compliance: No overdue accounts or confirmation statements, showing good regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Investigate the nature and terms of the creditors classified as "other creditors" to assess payment obligations and potential risks of default or supplier disputes.
• Review cash flow statements and management accounts (if available) to understand operational cash generation and short-term liquidity management.
• Assess dependence on the single director/shareholder and any succession or contingency plans in place for business continuity.
• Examine debt aging and debtor collectability, specifically the £1,500 other debtors, to validate asset quality.