Company Number: 13265716

Analysis Date: 2025-07-29 16:05 UTC

1. Risk Rating: HIGH
   WK Restaurants Ltd exhibits a high risk profile primarily due to its significant negative net assets, large long-term liabilities, and negative working capital. These factors indicate solvency challenges and potential difficulties in meeting financial obligations.

2. Key Concerns:

• Negative Shareholders' Funds: The company has substantial negative equity of £451,248 as of the latest accounts, worsening from the previous year, indicating accumulated losses and potential insolvency risk.
• Large Long-term Creditors: Creditors due after more than one year increased significantly to £544,872, far exceeding current assets and suggesting heavy reliance on long-term debt or obligations that may strain cash flow.
• Negative Net Current Assets: The net current liabilities stand at £54,106, reflecting liquidity issues where current liabilities exceed current assets, raising concerns about the company’s ability to cover short-term obligations.

3. Positive Indicators:

• Stable Director and PSC Structure: The company maintains a consistent management team with three active directors and two persons with significant control, which may support operational continuity.
• No Filing Delinquencies: Both accounts and confirmation statements are up to date with no overdue filings, indicating compliance with regulatory requirements.
• Tangible Fixed Assets: The company holds tangible fixed assets valued at £147,830 which might provide some asset backing and potential collateral for financing.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£544,872), including repayment schedules, interest rates, and creditor identities, to assess the sustainability of the company’s debt profile.
• Review recent cash flow trends and forecasts to evaluate liquidity management and the company’s ability to meet short-term liabilities given negative working capital.
• Examine the causes behind the increasing net liabilities and losses, including operational performance, margin pressures, or extraordinary expenses, to understand business sustainability.
• Confirm whether any contingent liabilities or off-balance sheet obligations exist that could further impact solvency.
• Assess management plans or strategies to restore capital adequacy and profitability.