Company Number: SC764594

Analysis Date: 2025-07-20 18:05 UTC

1. Risk Rating: HIGH
   The company shows negative net assets (£-2,845) and negative working capital, indicating potential solvency issues despite being a very recently incorporated micro-entity. The lack of employees and minimal current assets relative to liabilities signal liquidity concerns.

2. Key Concerns:

• Negative Net Assets and Working Capital: The balance sheet reports net current liabilities and net negative equity, which is a red flag for solvency risk.
• No Employees and Limited Operating History: With zero employees reported and incorporation less than one year ago, operational sustainability is uncertain.
• Single Director and Shareholder Concentration Risk: Taleb Ghazal holds 100% control and is the sole director, which poses governance and succession risks.

3. Positive Indicators:

• Compliance with Filing Requirements: Annual accounts and confirmation statements are current and not overdue, demonstrating regulatory compliance.
• Small Scale and Micro-entity Status: The company’s small size and micro-entity filing status reduce complexity and regulatory burden.
• Clear Industry Classification: Engaged in a defined retail niche (specialised footwear sales), which may offer focused market opportunities if operationalized.

4. Due Diligence Notes:

• Verify the nature of liabilities causing the negative net assets and assess the company’s plan or ability to service these obligations.
• Investigate cash flow forecasts or any capital injections planned or executed post-year-end to improve solvency.
• Review the business model and strategy given zero employees and very limited financial resources; check for reliance on external contractors or other arrangements.
• Confirm director background and any potential conflicts or risks associated with single-person control.
• Clarify whether the company has commenced trading and if revenue streams exist beyond the date of the accounts.