Company Number: 14500962

Analysis Date: 2025-07-29 12:33 UTC

1A RETAIL LIMITED — Risk Analysis

1. Risk Rating: HIGH
   The company’s financial data as of 30 November 2023 indicates significant solvency and liquidity concerns, with net current liabilities of £22,376 and overall negative net assets of the same amount. This suggests the company is unable to cover its short-term obligations with current assets, raising a high risk of financial distress.

2. Key Concerns:

• Negative Net Current Assets and Net Assets: The balance sheet shows current liabilities exceeding current assets by a substantial margin, resulting in negative net assets of £14,031, which signals potential insolvency risk.
• Minimal Current Assets (Cash/Receivables): Current assets total only £135, which is extremely low relative to liabilities of £22,511, indicating poor liquidity and very limited cash or near-cash resources to meet immediate debts.
• Recent Director Resignation and Control Structure: One director resigned recently (November 2023), and control is concentrated among two individuals who each reportedly have 75-100% control, which may imply governance or internal control issues needing further review.

3. Positive Indicators:

• Compliant Filing Status: The company is up to date with statutory filings for accounts and confirmation statements, suggesting basic regulatory compliance.
• Micro-Entity Status: Being a micro-entity reduces regulatory burden and filing complexity, which might help manage costs and administrative effort.
• Existence of Share Capital: There is a nominal share capital (£100 called up but not paid), which could be a starting point for recapitalization if needed.

4. Due Diligence Notes:

• Investigate the Nature and Timing of Current Liabilities: Clarify what constitutes the £22,511 current liabilities and whether these are overdue or subject to repayment plans.
• Examine Cash Flow and Operating Performance: Review detailed cash flow statements and profit and loss accounts (not currently available) to assess operational sustainability and cash generation ability.
• Understand Shareholder and Director Arrangements: Confirm the ownership/control details given the apparent overlapping PSC declarations and director changes, to evaluate governance risks.
• Review Business Model Viability: Given the SIC code for take-away food shops, assess market conditions, competitive positioning, and business plans to determine if the company can improve financial health.