Company Number: 13871760

Analysis Date: 2025-07-20 13:30 UTC

1. Risk Rating: LOW-MEDIUM
   The company shows positive net assets and improvement in working capital over the past year, indicating solvency. However, as a micro-entity with limited financial disclosures and a relatively short operating history (since 2022), some caution is warranted.

2. Key Concerns:

• Thin Net Current Assets: The net current assets are positive but marginal (£1,024 in 2024), which could signal limited liquidity buffers to meet short-term obligations.
• Limited Financial History: Only two full years of financial data are available, limiting trend analysis and confidence in operational stability.
• Single Director and Shareholder: Control is concentrated in one individual, increasing governance risk and potential for insufficient oversight.

3. Positive Indicators:

• Improving Financial Position: Net assets have increased significantly from £1,423 in 2023 to £7,195 in 2024, demonstrating growth.
• Compliance with Filings: No overdue accounts or confirmation statements indicate good regulatory compliance to date.
• Stable Employee Base: The number of employees increased modestly from 8 to 9, suggesting some operational continuity and growth.

4. Due Diligence Notes:

• Verify cash flow statements and profit/loss details to assess ongoing liquidity and profitability, as these are not publicly filed for micro-entities.
• Assess the business model in the licensed restaurant sector for scalability and resilience, especially given the small scale of operations.
• Review governance arrangements given the sole director/shareholder structure, including any related party transactions or financial dependencies.
• Confirm no pending legal or financial contingencies not disclosed in the accounts.