Company Number: 13528541

Analysis Date: 2025-07-20 18:44 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net current assets and net assets, indicating solvency at the balance sheet date. However, the current liabilities are high relative to net assets, and the company holds no trade debtors in the latest year while carrying significant stock, which may present liquidity risks. The absence of employees and limited operational history also warrant caution.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£557,829) are substantially high compared to net current assets (£10,949), with a significant portion of current assets tied up in stock (£293,060) rather than cash or receivables. This could affect the company’s ability to meet short-term obligations promptly.
• Operational Sustainability: The company has no employees reported and no trade debtors in the latest year, raising questions about ongoing trading activity and revenue generation.
• Concentration of Control: One individual, Mr Abraham Jacob, holds 75-100% of shares and voting rights, which may concentrate decision-making and could pose governance risks if not managed transparently.

3. Positive Indicators:

• Solvency: Positive net assets and shareholders’ funds have increased from £9,151 in 2023 to £10,949 in 2024, indicating some retained earnings or capital injection.
• Timely Compliance: The company is up to date with statutory filings and accounts, with no overdue returns or accounts.
• Cash Position Improvement: Cash at bank increased significantly from £32,846 in 2023 to £275,718 in 2024, strengthening immediate liquidity on paper.

4. Due Diligence Notes:

• Investigate the nature and convertibility of stock, as high stock levels relative to cash and receivables could indicate slow-moving inventory or overstocking.
• Review the company’s income streams and trading activity given the absence of employees and trade debtors in the latest accounts. Confirm whether the company is operational or holding stock for future sales.
• Assess the director’s loan account balance and terms to understand related party financing and its impact on liquidity.
• Confirm the robustness of governance arrangements given the sole control by one director and shareholder.