Company Number: 14069165

Analysis Date: 2025-07-29 19:38 UTC

1. Risk Rating: HIGH
   Despite being a micro-entity with limited financial disclosure, the latest accounts for the year ending 30 April 2024 indicate negative net assets of £7,377, a significant deterioration from positive net assets of £99 the prior year. Current liabilities exceed current assets by £12,034, signaling potential liquidity problems. This suggests challenges in meeting short-term obligations and potential solvency concerns.

2. Key Concerns:

• Negative Net Assets: The company’s balance sheet shows net liabilities rather than net assets, indicating it is technically insolvent on a balance sheet basis.
• Working Capital Deficit: Current liabilities (£82,924) exceed current assets (£70,890), leading to negative net current assets (-£12,034), which raises immediate liquidity risk.
• Limited Operating History & Scale: Incorporated in April 2022, this is a very young company with only 1 employee on average and minimal financial scale, increasing operational risk and limited financial resilience.

3. Positive Indicators:

• No Overdue Filings: The company is current with accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Clear Control Structure: The three directors each hold significant ownership and control, potentially enabling decisive governance.
• Micro-entity Reporting: The company benefits from simplified accounting requirements, reducing administrative burden.

4. Due Diligence Notes:

• Cash Flow and Profitability: Investigate detailed cash flow statements and profit & loss accounts (not provided) to understand operational cash generation or losses.
• Nature of Current Liabilities: Examine the composition and maturity of current liabilities to assess immediate payment obligations and any overdue or disputed creditors.
• Business Model and Market Position: Assess the sustainability of the retail business given its small size and financial position, including customer base, sales growth, and competitive environment.
• Directors’ Experience and Related Party Transactions: Review backgrounds of directors and any related party transactions that could impact financial health or governance.
• Future Funding Plans: Determine if the company has access to further equity or debt financing to support operations and cover short-term deficits.