Company Number: 13297566

Analysis Date: 2025-07-29 13:41 UTC

1. Risk Rating: MEDIUM
   Justification: The company is a micro-entity with minimal share capital and modest net assets. While it remains active and compliant with filing deadlines, the presence of significant long-term creditors relative to current assets and low equity suggests moderate solvency risk. The small scale and limited employee base indicate limited operational scale, increasing vulnerability to adverse trading conditions.

2. Key Concerns:

• Solvency and Capital Structure: The company has long-term liabilities (£12,750) exceeding its current assets and fixed assets combined, resulting in very low net assets (£1,536). This thin equity buffer raises concerns about the company’s ability to meet long-term obligations without additional financing or profitability improvements.
• Liquidity Mismatch: Current assets (£11,586) are slightly less than current liabilities (£12,750) if long-term creditors are excluded, but the accounts show a net current asset figure of £10,186, which appears inconsistent with the creditor split. Careful reconciliation is needed to confirm liquidity position; however, the data hint at potential liquidity strain.
• Limited Operational Scale: The company employs only one person and operates in retail of textiles via specialised stores and agents. This narrow operational base may limit revenue diversification and resilience against market fluctuations.

3. Positive Indicators:

• Regulatory Compliance: All accounts and confirmation statements are filed on time with no overdue filings or penalties, indicating good governance and regulatory adherence.
• Stable Net Assets: Although low, net assets have increased slightly year-on-year from £1,528 to £1,536, showing modest improvement or at least stability in equity.
• No Auditor Requirement: Filing under micro-entity provisions reduces administrative cost burdens, appropriate for the company’s scale.

4. Due Diligence Notes:

• Verify the classification and maturity dates of creditors to clarify liquidity position and working capital adequacy.
• Review cash flow statements or bank statements to assess actual cash availability and operational cash flow trends.
• Investigate any contingent liabilities or off-balance sheet commitments not reflected in the micro-entity accounts.
• Understand the business model's revenue streams, client concentration, and growth prospects to assess sustainability beyond financial figures.
• Confirm director background and any related party transactions given the limited publicly available data.