Company Number: 13100667

Analysis Date: 2025-07-20 15:10 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent negative net assets and net current assets over multiple years, indicating an ongoing financial deficit and balance sheet insolvency. Current liabilities exceed current assets substantially, reflecting acute liquidity stress. Despite no overdue filings, the financial position suggests high risk of inability to meet obligations without external support.

2. Key Concerns:

• Solvency Risk: Negative net assets of £10,834 at the latest year-end, with worsening trends over prior years, imply the company is balance sheet insolvent.
• Liquidity Issues: Current liabilities (£1,449) exceed current assets (negative £16,511, likely reflecting accrued expenses or overdrafts), indicating severe working capital shortfall and likely cash flow difficulties.
• Operational Sustainability: Despite increasing average employees from 1 to 5, the company continues to report accumulating losses and negative equity, raising concerns about long-term viability without capital injection or turnaround.

3. Positive Indicators:

• Filing Compliance: No overdue accounts or confirmation statements, reflecting administrative discipline and regulatory compliance.
• Active Online Presence: A functioning website with social media links and contact details suggests ongoing business activity and engagement with customers.
• Single Controlling Shareholder: Clear ownership and control by Mr. Paul Mihai Bratu may facilitate decision-making and potential recapitalization efforts.

4. Due Diligence Notes:

• Investigate the nature of the negative current assets figure and clarify if this includes overdrafts, prepayments, or accounting allocations impacting liquidity.
• Review the company’s cash flow statements and any financing arrangements to determine how operational expenses are being funded.
• Assess the business model’s revenue generation and profitability trends given the manufacturing and retail focus on confectionery and prepared meals.
• Understand director’s plans for addressing the persistent losses and whether any restructuring, capital injection, or external funding is anticipated.
• Confirm absence of any director disqualifications or regulatory enforcement actions given sole director status.