Company Number: 14436949

Analysis Date: 2025-07-20 13:28 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, with negative net assets and shareholder funds as of the latest financial year end. The increase in long-term liabilities combined with a substantial deficit in equity indicates elevated financial risk.

2. Key Concerns:

• Negative Net Assets: The net assets have declined sharply from positive £10,168 in 2023 to negative £63,438 in 2024, signaling erosion of equity and potential insolvency risk.
• Rising Long-Term Debt: Creditors due after one year (bank loans) have increased from £21,900 to £72,974, indicating increased leverage and future repayment obligations that may strain cash flows.
• Working Capital Pressure: Although net current assets remain positive (£9,536), cash balances are low (£2,263), and current liabilities have nearly tripled, suggesting liquidity constraints and tight short-term funding.

3. Positive Indicators:

• Current Filing Compliance: Accounts and confirmation statements are filed on time with no overdue notices, demonstrating regulatory compliance and good governance on statutory filings.
• Consistent Employment: Stable average employee count of 2 suggests operational continuity and controlled personnel costs.
• Ownership and Control: Sole ownership and directorship by Mr. Onur Yavuz may facilitate swift decision-making and strategic direction.

4. Due Diligence Notes:

• Investigate causes of sharp deterioration in net assets, including losses incurred during the year and any extraordinary items.
• Review terms and conditions of the increased bank loans to assess repayment schedules, interest rates, and covenant requirements.
• Examine cash flow statements and working capital management to evaluate liquidity sufficiency to meet near-term obligations.
• Assess the underlying business model of retail and wholesale clothing for sustainability given financial stress.
• Confirm absence of director disqualifications or legal proceedings that could impact management stability.