Company Number: 15018407

Analysis Date: 2025-07-20 15:08 UTC

1. Risk Rating: HIGH
   Waffle Heart Ltd shows significant solvency and liquidity concerns given its net current liabilities of £10,019, net negative assets of £8,019, and minimal cash balance (£71). The company has been trading for just over one year with no employees and is heavily reliant on director loans to fund operations, which poses material financial risk.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company’s liabilities exceed assets, indicating potential insolvency risk and inability to meet short-term obligations without external funding.
• Very Low Cash Reserves: Cash on hand is negligible (£71), insufficient to cover even minor expenses or creditors (£10,090), raising immediate liquidity red flags.
• Reliance on Director Loans: £9,790 of creditors due within one year are loans from directors, signaling dependence on related party funding rather than operational cash flow.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with statutory filing deadlines for accounts and confirmation statements, reducing regulatory risk.
• Fixed Assets Present: Tangible fixed assets of £2,000 suggest some investment in operational capacity (fixtures and fittings).
• Full Control by Single Director/PSC: Clear ownership and governance structure with one director controlling 75-100% of shares, potentially facilitating swift decision-making.

4. Due Diligence Notes:

• Investigate the company’s business plan and cash flow forecasts to understand how it intends to move from negative net assets to profitability and positive cash flow.
• Clarify terms and repayment intentions for the director loans, including any formal agreements or security held.
• Assess the sustainability of operations given zero employees reported in the first accounting period and the nature of the take-away food business (SIC 56103).
• Monitor for any subsequent filings or trading updates post-2024 accounts to track operational progress or worsening financial position.