Company Number: 12478349

Analysis Date: 2025-07-29 20:03 UTC

1. Risk Rating: MEDIUM
   The company shows signs of financial stress with negative net assets as of the latest year-end (2024), indicating potential solvency concerns. However, it maintains positive net current assets, suggesting some short-term liquidity. The company is micro-sized and compliant with filings, which reduces regulatory risk but limits transparency.

2. Key Concerns:

• Negative shareholders’ funds (£-8,454) at 30-09-2024, down from a small positive balance in prior years, indicating erosion of equity and potential solvency risk.
• Significant increase in long-term creditors and accruals/deferred income (£15,249 and £18,654 respectively), which may strain future cash flows and obligations beyond one year.
• Resignation of one director in early 2024 may indicate governance changes; the impact on operational stability and management continuity is unclear.

3. Positive Indicators:

• Positive net current assets (£2,828) suggest the company can meet short-term liabilities with current assets, which mitigates immediate liquidity risk.
• Regular and timely filing of accounts and confirmation statements with no overdue submissions, indicating good regulatory compliance.
• The business operates in licensed restaurants and public houses, sectors with stable demand potential, supported by a steady average of 9 employees.

4. Due Diligence Notes:

• Investigate the reasons behind the negative net assets and whether losses are operational or due to accounting adjustments; assess cash flow statements if available.
• Clarify the nature and terms of long-term creditors and accruals to understand repayment schedules and potential refinancing needs.
• Review the impact of the director resignation on company strategy and operational control, including any changes in ownership or management roles.
• Explore whether the company has access to additional financial support from shareholders or related parties given the involvement of significant control individuals residing locally.