Company Number: 13826995

Analysis Date: 2025-07-20 12:49 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net current assets and negative total net assets over consecutive years, which indicates a potential solvency issue. The current liabilities exceed current assets by a significant margin, raising concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£34,214) exceed current assets (£16,241) as of January 2024, resulting in negative net current assets (-£17,973), which implies liquidity stress.
• Negative Net Assets: Total net assets are negative (-£6,769), worsening from the prior year (-£4,594), suggesting accumulated losses or insufficient capital to cover liabilities.
• Limited Financial History and Scale: Incorporated in 2022 and filing as a micro-entity, the company is very young with limited financial history, making it difficult to assess operational sustainability or performance trends.

3. Positive Indicators:

• No Filing or Compliance Issues: All filings (accounts and confirmation statements) appear up to date with no overdue returns.
• Stable Employee Base: The company maintains a consistent workforce of 3 employees, indicating operational continuity.
• Sole Director and PSC Consistency: The director and sole person of significant control are aligned, simplifying governance and oversight.

4. Due Diligence Notes:

• Investigate the nature of current liabilities to understand if they are trade creditors, loans, or other obligations and their terms.
• Review cash flow statements and management accounts (not available here) to assess liquidity and operational cash generation.
• Confirm the company's business model viability given its SIC code (unlicensed restaurants and cafes), considering sector risks and post-pandemic recovery trends.
• Enquire about any external funding or shareholder support plans to address negative equity.
• Assess director’s background and capability to manage turnaround or growth, noting the director’s occupation as a chef may influence management approach.