Company Number: 14120319

Analysis Date: 2025-07-29 14:15 UTC

1. Risk Rating: HIGH
   Justification: The company has persistent and significant net liabilities, with net current liabilities of approximately £25,490 and negative shareholders' funds of £23,690 as of the latest accounts. These figures indicate that liabilities considerably exceed assets, suggesting solvency concerns. The company's micro-entity status and absence of audit limit financial detail, but the negative net assets trend over multiple years is a clear red flag.

2. Key Concerns:

• Solvency Risk: Negative net assets and net current liabilities have worsened from £19,623 to £23,690 in the latest year, indicating increasing financial distress and potential inability to meet obligations as they fall due.
• Liquidity Concerns: Current liabilities (£29,356) substantially exceed current assets (£3,866), implying poor short-term liquidity and possible cash flow difficulties.
• Operational Stability: The company has been trading since May 2022 but shows no improvement in its financial position. The small scale (2 employees) and absence of turnover data make it difficult to assess revenue generation capability and sustainability.

3. Positive Indicators:

• Compliance: Accounts and confirmation statements are filed on time and not overdue, showing adherence to statutory filing requirements.
• Management: Two directors with significant control are actively appointed and local to the registered office, indicating stable governance structure.
• Exemption from Audit: While this limits financial transparency, it is consistent with the company's micro status and reduces administrative burden.

4. Due Diligence Notes:

• Investigate the company’s revenue streams and operating cash flows to determine if losses are operational or one-off.
• Review any related party transactions or director loans that might affect liquidity or solvency.
• Assess plans for capital injection or restructuring to address continued negative equity.
• Confirm whether there is any contingent liability or off-balance sheet commitments exacerbating risk.
• Evaluate market position and business model viability given the retail mail order SIC code and competitive environment.