THE SQUARE CAFFE LTD

Executive Summary

The Square Caffe Ltd is a newly established micro-entity operating in the unlicensed restaurant and café sector. It demonstrates a solid initial liquidity position and compliance with filing obligations, but as a startup, it carries inherent risks related to limited operational history and concentrated ownership. Further due diligence is recommended to validate operational sustainability and governance arrangements.

THE SQUARE CAFFE LTD - Analysis Report

Company Number: 15664009

Analysis Date: 2025-07-29 15:16 UTC

1. Risk Rating: LOW
   The company’s solvency position appears sound with positive net assets and shareholders’ funds exceeding current liabilities by a comfortable margin. There are no overdue filings or regulatory concerns evident. The company is newly incorporated but has demonstrated initial operational activity with five employees and positive working capital.

2. Key Concerns:

• Newly Incorporated Entity: Founded in April 2024, the company has limited operational history, which inherently raises uncertainty about future performance and sustainability.
• Minimal Fixed Assets: Fixed assets are nominal (£2,000), indicating reliance on current assets and potentially limited capital investment or operational scale at this stage.
• Single Director and PSC Control: The company is controlled entirely by one individual who holds full ownership and director roles, which concentrates control and may pose governance risks without independent oversight.

3. Positive Indicators:

• Healthy Working Capital: Current assets (£31,508) significantly exceed current liabilities (£5,987), yielding positive net current assets and suggesting liquidity to meet short-term obligations.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements.
• Micro-Entity Reporting: Use of micro-entity provisions reflects a streamlined, low-cost reporting structure appropriate for the company size and complexity.
• Employment of Staff: Average of 5 employees signals active trading and operational engagement rather than a dormant status.

4. Due Diligence Notes:

• Review Business Plan and Cash Flow Projections: Given its recent incorporation, scrutinize management’s forecasts and plans to assess sustainability and growth prospects.
• Examine Director Background and Related Party Transactions: Confirm the professional standing of Mr. Coskun Ince and check for any conflicts of interest or financial dependencies.
• Assess Customer Base and Revenue Streams: Verify the stability and diversity of income sources in the café sector, particularly given economic sensitivities affecting hospitality.
• Investigate Lease or Property Arrangements: With minimal fixed assets, understand the nature of premises occupancy (owned vs. leased) and related obligations.
• Confirm No Outstanding Regulatory or Tax Issues: Although no issues are apparent, ensure that VAT, PAYE, and other compliance matters are up to date.