Company Number: 13493881

Analysis Date: 2025-07-29 18:48 UTC

1. Risk Rating: HIGH
   The company exhibits a high-risk profile primarily due to persistent and increasing net liabilities, negative shareholders' funds, and the absence of employees or operational scale, indicating significant solvency and liquidity concerns.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: Net liabilities have worsened from approximately £11,482 in 2021 to £20,563 in 2024, signaling ongoing financial distress and erosion of capital.
• Liquidity Mismatch: Current liabilities (~£22,833) vastly exceed current assets (£436) as of 2024, indicating a poor working capital position and potential difficulties meeting short-term obligations.
• Operational Inactivity: The company reports zero employees and minimal fixed assets, suggesting limited or no active business operations, raising sustainability questions.

3. Positive Indicators:

• Compliance with Filing: The company has no overdue accounts or confirmation statements, showing adherence to statutory filing requirements.
• Stable Legal Status: The company remains active with no signs of insolvency proceedings such as liquidation or administration.
• Recent Director Appointment: Appointment of a new director in September 2024 may indicate attempts to improve governance or strategic direction.

4. Due Diligence Notes:

• Examine Underlying Causes of Losses: Investigate the nature of liabilities and reasons for increasing net liabilities to understand if losses are operational or due to financing arrangements.
• Cash Flow and Debt Servicing: Assess cash flow statements and creditor arrangements to evaluate the company's ability to meet short-term debts given poor liquidity.
• Business Model and Revenue Streams: Clarify current business activities, revenue generation status, and future prospects in the second-hand goods retail sector, especially given the micro-entity scale and no employees.
• Director Background and Plans: Review the background and intentions of the newly appointed director and any strategic plans to restore financial health.
• Potential Related Party Transactions: Given the significant control by a single individual and previous director, explore any related party transactions or financial support arrangements.