THE FRUIT AND VEG STORE LIMITED

Executive Summary

THE FRUIT AND VEG STORE LIMITED is a recently incorporated micro-entity showing improving financial health with strong liquidity and net asset growth. While small scale and owner concentration are considerations, the company maintains compliance and operational stability. Further review of profitability and market positioning is recommended to fully assess longer-term sustainability.

THE FRUIT AND VEG STORE LIMITED - Analysis Report

Company Number: 14156879

Analysis Date: 2025-07-29 20:19 UTC

1. Risk Rating: LOW
   The company exhibits a solid net asset position with healthy net current assets and no overdue filings. The micro-entity financials reflect an improving balance sheet and modest operational scale, suggesting low immediate solvency or liquidity risk.

2. Key Concerns:

• Limited Financial History: Incorporated in 2022, the company has just two years of financial data, constraining long-term trend analysis.
• Small Scale: With only 4 employees and micro-entity status, the business may be vulnerable to market fluctuations or operational disruptions given limited diversification and scale.
• Director Concentration: Mr. Shahzad Akhtar holds full ownership and control, which could pose governance risks or succession issues.

3. Positive Indicators:

• Strong Liquidity: Current assets (£51,641) significantly exceed current liabilities (£20,493) as of 2024, indicating good short-term financial health.
• Growing Net Assets: Net assets have increased substantially from £6,312 in 2023 to £33,667 in 2024, showing capital build-up and retained earnings accumulation.
• Compliance: No overdue accounts or confirmation statements; filings are up to date and accounts prepared under applicable micro-entity standards.
• Stable Workforce: Consistent employee headcount (4) suggests operational stability for a small business.

4. Due Diligence Notes:

• Review detailed profit and loss information (not provided here) to assess profitability, revenue trends, and cash flow patterns.
• Investigate the nature of the increased current assets—specifically cash versus receivables or inventory—to verify liquidity quality.
• Understand the business model and market position in the specialised food retail segment to evaluate sustainability and competitive risks.
• Confirm the governance framework given sole ownership and director control, including any related party transactions or succession planning.
• Verify the nature of fixed assets and any capital commitments or contingent liabilities that may impact future solvency.