Company Number: SC698362

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

1. Risk Rating: HIGH
   The company exhibits persistent and significant net liabilities and negative net current assets over multiple years, indicating ongoing solvency and liquidity challenges. The worsening net asset position from -£7,502 in 2021 to -£9,030 in 2024, despite slight improvement from 2023, signals financial strain.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has reported negative equity consistently, reflecting accumulated losses and potential insolvency risk.
• Negative Net Current Assets: Current liabilities exceed current assets, pointing to liquidity risk and potential difficulties meeting short-term obligations.
• Small Scale with Minimal Capital: The share capital is nominal (£2), which may limit the company’s ability to raise funds internally or externally in distress.

3. Positive Indicators:

• Timely Compliance: The company is up to date with accounts and confirmation statement filings, showing adherence to regulatory requirements.
• Stable Management: Directors have remained consistent since incorporation, suggesting stable governance.
• Micro-entity Status: This limits reporting burden and may reduce overhead costs, potentially easing operational pressures.

4. Due Diligence Notes:

• Investigate the company’s cash flow statements and profit and loss accounts to understand operational cash generation and loss drivers.
• Review any related party transactions or director loans that may impact solvency.
• Assess business plans or strategies for turnaround given ongoing losses and insolvency indicators.
• Confirm if there are any contingent liabilities or impending creditor actions not reflected in current filings.
• Consider the competitive environment in the retail food sector and impact on sales and margins.