Company Number: 13918252

Analysis Date: 2025-07-29 18:39 UTC

1. Risk Rating: HIGH
   Justification: The company shows significant negative net assets (£-4,305) and net current liabilities (£-5,693) as of 31 March 2024, indicating solvency and liquidity challenges. The decline from previous year positive equity suggests worsening financial health.

2. Key Concerns:

• Solvency Risk: Negative net assets and shareholders’ funds reflect an insolvent balance sheet position, raising concerns about the company’s ability to meet long-term obligations.
• Liquidity Shortfall: Current liabilities significantly exceed current assets, with cash reserves reduced from £1,596 to £456, indicating potential cash flow difficulties to cover short-term debts.
• Operational Sustainability: The company has only one employee (the director) and limited tangible fixed assets, with no turnover or profitability data disclosed, raising questions on the business’s operational viability and growth prospects.

3. Positive Indicators:

• Compliance with Filing: The company is up to date with both accounts and confirmation statement filings, indicating good regulatory compliance.
• Single Director Control: Ownership and control are concentrated with one individual (Ms Amy Louise Gardner Trees), which can facilitate swift decision-making.
• Small Scale Operations: Being a small, artistic creation business with limited fixed assets may reduce overheads and complexity.

4. Due Diligence Notes:

• Verify the company’s turnover, revenue streams, and profitability trends, as the abridged accounts omit profit and loss details.
• Investigate the causes of the substantial increase in current liabilities and the nature of creditors.
• Assess cash flow projections and working capital management to understand short-term liquidity plans.
• Review director’s plans for recapitalisation or restructuring given the negative equity.
• Confirm no undisclosed contingent liabilities or pending legal/regulatory issues.