Company Number: 13470719

Analysis Date: 2025-07-20 17:49 UTC

1. Risk Rating: HIGH
   The company exhibits persistently negative net assets and net current liabilities over multiple years, indicating ongoing solvency and liquidity issues. The absence of current assets and increasing creditors suggest challenges in meeting short-term obligations.

2. Key Concerns:

• Continuous Negative Net Assets: The company’s net liabilities have increased from approximately £-5,714 in 2022 to £-7,592 in 2024, indicating worsening financial position.
• Negative Working Capital: Current liabilities exceed current assets by a significant margin (£9,539 in 2024), raising concerns about the company’s ability to cover immediate debts.
• Limited Operational Scale: With only one employee (the director) and micro-entity classification, the company’s operational capacity and revenue generation potential may be constrained.

3. Positive Indicators:

• Compliance with Filing Deadlines: The company is up-to-date with both accounts and confirmation statement filings, showing regulatory adherence.
• Single Director with Full Control: Mr. Salman Ahmed Khalid’s full ownership and control may facilitate rapid decision-making and potentially align interests closely with company performance.
• Exemption from Audit: The micro-entity status and audit exemption reduce administrative burdens and costs, which may be appropriate for the company's size.

4. Due Diligence Notes:

• Investigate the cause of persistent losses and negative equity—review trading performance, revenue streams, and expenses.
• Assess cash flow statements (not provided) to understand liquidity dynamics and whether the company relies on external funding or credit facilities.
• Examine related party transactions or director loans that might be supporting the balance sheet given the negative equity.
• Confirm whether any contingent liabilities or off-balance-sheet obligations exist that could exacerbate risk.
• Evaluate the business model viability given the retail internet sales SIC code and minimal assets.