Company Number: 15033854

Analysis Date: 2025-07-20 14:58 UTC

1. Risk Rating: HIGH
   Justification: The company's latest micro-entity accounts show net current liabilities of £3,409 and negative net assets of the same amount, indicating insolvency on a balance sheet basis. The company was incorporated in July 2023 and has operated for one financial year, showing minimal current assets (£1,637) and current liabilities (£5,046). This suggests cash flow constraints and inability to meet short-term obligations from existing resources.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The balance sheet reveals a net current liability position and overall negative shareholders' funds, highlighting a solvency risk.
• Limited Operating History and Scale: Incorporated less than two years ago with only two employees and minimal financial resources, the business may face significant operational challenges scaling or generating sustainable cash flow.
• High Concentration of Control: Single director and 75-100% shareholder control by one individual increases governance risk and potential lack of oversight.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with its confirmation statement and accounts filings, indicating good regulatory compliance so far.
• Active Website Presence: The operational status of the company website (crawled July 2025) suggests ongoing business activities and attempts at market presence.
• Micro-entity Reporting Simplification: Being a micro-entity limits reporting burdens, potentially easing operational overhead in early stages.

4. Due Diligence Notes:

• Examine Cash Flow Statements: To determine if operational cash inflows can cover current liabilities and ongoing expenses.
• Clarify Nature of Current Liabilities: Are these trade payables, short-term loans, or other obligations requiring immediate repayment?
• Assess Director’s Financial Support: Is the sole shareholder/director providing financial backing or guarantees to sustain the company?
• Review Business Model Viability: Given the take-away food sector and micro scale, evaluate competitive positioning, margins, and growth prospects.
• Confirm No Undisclosed Liabilities: Validate that no contingent liabilities or regulatory issues are pending that could exacerbate financial stress.