Company Number: 13542625

Analysis Date: 2025-07-29 18:47 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, as evidenced by substantial negative net assets and shareholder funds that have worsened over four years. The liabilities notably exceed current assets, indicating a high risk of inability to meet short-term obligations.

2. Key Concerns:

• Severe Negative Net Assets: Net assets declined from approximately -£89k in 2021 to -£228k in 2024, signaling persistent losses and erosion of equity.
• Excessive Current Liabilities vs. Current Assets: Current liabilities exceed current assets by over £261k in 2024, highlighting poor liquidity and potential cash flow stress.
• High Director’s Loan Account: The director’s loan account forms the bulk of current liabilities (£282k in 2024), which may indicate reliance on director funding to sustain operations, raising questions about financial sustainability and creditor risk.

3. Positive Indicators:

• No Overdue Filings: The company’s accounts and confirmation statements are filed on time, reflecting regulatory compliance.
• Stable Ownership and Management: The primary director and significant shareholder, Dr Moftah Mohamed Mosbah Elbuzidi, has maintained control since incorporation, which may provide continuity.
• Tangible Fixed Assets Present: Although modest and depreciating, the company holds tangible assets (~£34k), which may provide some residual value.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account and repayment plans, as this is the largest liability.
• Review cash flow statements and bank transaction histories to assess ongoing liquidity and operational cash generation.
• Understand the company’s revenue trends and profitability outlook in the unlicensed restaurant/café sector, including impact of costs and any growth plans.
• Confirm if there are any contingent liabilities not disclosed in the filings.
• Assess whether there are any related party transactions or reliance on ongoing director funding.
• Clarify the reasons for persistent losses and the business model’s viability given the negative equity position.