Company Number: 14488906

Analysis Date: 2025-07-29 13:06 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk as demonstrated by its net liabilities position (£-16,119) and negative shareholders' funds (£-16,219). The current liabilities exceed current assets, and long-term creditors amount to £18,835, indicating a strained balance sheet.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company is insolvent on a balance sheet basis, which raises concerns about its ability to meet long-term obligations.
• High Long-Term Creditors: £18,835 due after more than one year compared to total assets less current liabilities of only £2,716 suggests potential cash flow and refinancing risks.
• Small Scale and Early Stage: Incorporated in late 2022, with only 3 employees and limited financial history, the company’s operational stability and track record remain unproven.

3. Positive Indicators:

• Current Assets Include Cash: £5,223 in cash helps maintain short-term liquidity and operational continuity.
• No Overdue Filings: Accounts and confirmation statements are up to date, indicating good compliance with statutory requirements.
• Single Shareholder with Full Control: Clear ownership and control by Zhong Zhao may facilitate decisive management actions.

4. Due Diligence Notes:

• Investigate the nature and terms of the £18,835 long-term creditors and whether this debt is sustainable or subject to restructuring.
• Review detailed cash flow forecasts and any financing arrangements to assess liquidity risk more precisely.
• Examine business plan and market positioning within the SIC 56290 "Other food services" sector to evaluate operational sustainability and growth prospects.
• Confirm any contingent liabilities or off-balance sheet obligations not evident in the filed accounts.
• Assess director’s track record and financial support capacity given the early stage and negative equity position.