Company Number: 13888158

Analysis Date: 2025-07-20 18:47 UTC

1. Risk Rating: MEDIUM
   The company shows a modest net asset base and positive working capital, which is encouraging for a micro-entity. However, the presence of a significant long-term creditor balance (£130,000) relative to net assets and current assets signals some solvency risk that warrants attention. The company is young (incorporated 2022) and still small-scale with minimal financial history.

2. Key Concerns:

• Long-term liabilities: The company has £130,000 in creditors due after more than one year, which is substantial compared to net assets (£48,301). The source and terms of this debt need examination to assess repayment risk.
• Liquidity position: Although net current assets are positive (£29,651), current liabilities include creditors of approx. £20,591, which could pressure short-term cash flows if not managed effectively.
• Limited financial history and scale: Incorporated in 2022 with 3 employees and micro-entity filings limits the ability to fully assess operational sustainability and financial trends.

3. Positive Indicators:

• Increasing net assets: Net assets improved from £17,400 in 2023 to £48,301 in 2024, indicating some growth in equity and possibly retained earnings or capital injection.
• Positive working capital: Current assets exceed current liabilities, suggesting the company can meet short-term obligations as of the last accounts date.
• Stable management and ownership: Single director and 75-100% shareholder control suggests clear governance and decision-making structure without apparent director changes or disqualifications.

4. Due Diligence Notes:

• Investigate the nature, interest rates, and repayment schedule of the long-term creditors (£130,000). Determine if this debt is sustainable and appropriately secured.
• Review cash flow statements or management accounts if available to assess actual liquidity beyond balance sheet figures.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not reflected in the micro-entity accounts.
• Validate the company’s business model and revenue generation, particularly given the SIC code (retail sale in non-specialised stores with food, beverages or tobacco predominating) and market conditions.
• Check for any regulatory or compliance issues, though no overdue filings or status warnings are currently noted.