Company Number: 14262002

Analysis Date: 2025-07-29 14:56 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position (£-4,393) and net current liabilities (£-9,660) as at 31 July 2024, indicating solvency concerns. The decline from a positive net asset position in the prior year suggests deteriorating financial health.

2. Key Concerns:

• Negative Net Assets: The company’s shareholders’ funds are negative, indicating liabilities exceed assets and raising solvency risk.
• Working Capital Deficit: The net current liabilities position shows the company may struggle to meet short-term obligations, reflecting liquidity stress.
• Rapid Financial Deterioration: Compared to the previous year, there is a significant drop in net assets (from £874 to £-4,393) and worsening current liabilities, signaling operational or financial difficulties developing within a very short timeframe since incorporation in 2022.

3. Positive Indicators:

• Small Scale Operations: As a micro-entity with only 2 employees, the company has limited operational complexity, potentially allowing for nimble cost control.
• Compliance: There are no overdue filings, and annual accounts and confirmation statements are up to date, indicating good regulatory compliance and governance in reporting.
• Established Auditor: Use of a professional accounting firm suggests some level of financial oversight despite exemption from audit.

4. Due Diligence Notes:

• Investigate the causes of the sharp decline in net assets and working capital, including revenue trends, cost structure, and any unusual or one-off charges.
• Review cash flow statements and bank balances to assess immediate liquidity and operational cash generation capability.
• Analyze creditor terms and any outstanding debts that may affect ongoing solvency.
• Clarify the nature of the accruals and deferred income (£8,900) which significantly impact net liabilities.
• Assess director and shareholder support mechanisms, such as loans or capital injections, given the negative equity position.
• Evaluate business model sustainability in the competitive takeaway food sector, considering market conditions since incorporation.