Company Number: 12593722

Analysis Date: 2025-07-29 14:06 UTC

1. Risk Rating: HIGH
   The company shows consistent and significant negative net asset values over recent years, indicating solvency concerns. Current liabilities vastly exceed current assets, raising serious liquidity issues. The financials suggest ongoing operational instability.

2. Key Concerns:

• Persistent negative net assets: The balance sheet shows net liabilities of £211,883 in 2024 and similar negative figures in prior years, indicating the company is insolvent on a balance sheet basis.
• Current liabilities (£219,124) massively outweigh current assets (£7,241), implying severe liquidity constraints and potential cash flow difficulties to meet near-term obligations.
• No employees reported and minimal asset base suggests limited operational capacity and potential sustainability challenges for ongoing trading.

3. Positive Indicators:

• The company is active, not in liquidation or administration, and filings (accounts and confirmation statement) are up to date with no overdue penalties.
• Share capital is present, and the director has maintained compliance with filing deadlines, indicating some governance discipline.
• Operating in the retail via internet segment (SIC 47910), which generally offers scalability potential if liquidity issues can be resolved.

4. Due Diligence Notes:

• Investigate the nature and terms of the large current liabilities to assess repayment schedules, creditor relationships, and any contingent liabilities.
• Review detailed cash flow statements and management accounts if available to understand operational cash generation or burn rate.
• Enquire about the company’s business model viability given no employees and limited current assets, including sales pipeline and contracts.
• Confirm whether director or shareholder loans contribute to liabilities and if restructuring or refinancing plans exist.
• Assess any related party transactions or off-balance sheet exposures that could impact financial stability.