Company Number: 14189419

Analysis Date: 2025-07-20 16:40 UTC

1. Risk Rating: HIGH
   The company's financial data shows significant net current liabilities and negative net assets, indicating solvency concerns. The micro-entity balance sheet reports net current liabilities of £42,197 and net assets of the same negative amount, which is a clear red flag.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The balance sheet shows current liabilities (£92,995) exceeding current assets (£41,453), resulting in a net current liability position of -£42,197, which threatens the company’s ability to meet short-term obligations.
• Limited Financial History and Size: Incorporated recently (June 2022), the company only has one set of micro-entity accounts, limiting trend analysis and increasing uncertainty regarding operational stability.
• Small Employee Base and Potential Operational Risk: With only 2 employees, the company may face challenges scaling operations or managing risks associated with limited human resources.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statement are up to date, indicating compliance with regulatory filing requirements.
• Active Website and Contact Details: The company maintains an active website and provides contact information, reflecting some level of operational presence and transparency.
• Exemption from Audit: As a micro-entity, the company benefits from simplified reporting, reducing administrative burden.

4. Due Diligence Notes:

• Investigate Cash Flow and Funding Sources: The negative net assets suggest potential liquidity stress; review cash flow statements and funding arrangements to assess ability to continue trading.
• Review Director Background and Governance: Confirm the experience and track record of directors, especially given the company’s early stage and financial position.
• Examine Customer Base and Business Model Viability: The SIC code indicates retail of second-hand goods; assess market demand, competitive position, and revenue stability.