Company Number: 14358039

Analysis Date: 2025-07-29 18:46 UTC

1. Risk Rating: MEDIUM
   The company has shown a marked turnaround from a negative net asset position to a positive one within two years, indicating improving solvency. However, the micro-entity scale, relatively modest asset base, and recent history of net current liabilities suggest ongoing liquidity and operational risks.

2. Key Concerns:

• The 2023 financial year showed significant current liabilities exceeding current assets by £30,852, indicating past liquidity stress that could impact supplier and creditor confidence.
• Limited disclosure of profit and loss accounts (exempt under micro-entity rules) restricts insight into profitability and cash flow sustainability.
• The company is relatively young (incorporated September 2022) with limited financial history, which increases uncertainty around operational stability and market positioning.

3. Positive Indicators:

• The latest accounts (2024) show a positive net current asset position (£9,637) and net assets of £34,342, reflecting a recovery in financial stability.
• The company has no overdue filings, demonstrating regulatory compliance and good governance in terms of reporting.
• The sole director and 100% shareholder appear stable with no indications of disqualification or compliance issues.

4. Due Diligence Notes:

• Review detailed cash flow statements and profit and loss data if available outside micro-entity filings to assess operational cash generation and profitability trends.
• Assess the nature of the liabilities in 2023 to understand if the prior liquidity risk was due to one-off events or ongoing operational issues.
• Investigate customer base, contracts, and market conditions in the retail bakery sector (SIC 47240, 10710) to evaluate sustainability and growth prospects.
• Confirm the director’s background and financial commitments to gauge risk concentration due to single-person control.