Company Number: 14968627

Analysis Date: 2025-07-20 12:30 UTC

1. Risk Rating: HIGH
   The company's financials show significant negative net current assets and net liabilities of £77,745 as of 30 June 2024, indicating an inability to meet short-term obligations from available current assets. This points to serious solvency concerns despite being a recently incorporated micro-entity.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£90,530) far exceed current assets (£12,785), leading to a working capital deficit of £77,745, which is a strong indicator of liquidity risk.
• Negative Net Assets and Shareholders’ Funds: The balance sheet shows net liabilities equal to shareholders’ funds of -£77,745, implying accumulated losses or funding shortfalls that undermine financial stability.
• No Employees & Early Stage: The company has no employees and was incorporated less than one year ago, increasing operational risk given the absence of established business activities or revenue streams.

3. Positive Indicators:

• No Overdue Filings: All statutory filings and accounts are up to date with no overdue returns or accounts, indicating compliance with regulatory requirements.
• Clear Ownership and Control: Ownership is transparent with two identified persons holding 75-100% control, which may facilitate decisive governance and capital support if needed.
• Industry Classification: The company is engaged in retail and wholesale of food and beverages, sectors that can be lucrative if properly capitalized and managed.

4. Due Diligence Notes:

• Investigate the nature and cause of the significant current liabilities—whether these are trade creditors, loans, director loans, or other payables—and the company’s plans to address these obligations.
• Clarify the relationship and roles of the two individuals listed as persons with significant control, given both are reported to have 75-100% ownership and voting rights, which may indicate an error or require further explanation.
• Assess the business model viability given zero employees and the short operational history; review any contracts, orders, or pipeline business that might support future cash flow.
• Review any off-balance sheet liabilities or contingent liabilities not reflected in the micro-entity accounts.
• Confirm the accuracy of the financial figures as the reported notes show net current assets as positive £77,745 while the balance sheet and totals indicate net liabilities of the same amount—this inconsistency requires clarification.