Company Number: 13911264

Analysis Date: 2025-07-20 13:42 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to persistent negative net current assets and shareholders’ funds, indicating ongoing solvency concerns. The current liabilities exceed current assets by a significant margin, and the company remains reliant on creditor financing without evident equity support, despite a recent reduction in losses.

2. Key Concerns:

• Solvency Risk: The balance sheet shows net current liabilities of £24,176 and negative shareholders’ funds of £13,299 as of February 2024, though improved from prior year deficits. This suggests the company is unable to fully cover short-term obligations from liquid assets, posing a risk of default or insolvency if conditions worsen.
• Liquidity Concerns: Cash reserves are modest (£54,191) relative to current liabilities (£370,365), and trade creditors have increased markedly (£135,854 in 2024 vs. £47,613 in 2023), indicating potential cash flow pressure and reliance on supplier credit.
• Operational Stability: The company is relatively new (incorporated 2022) with a small headcount (4 employees) and reported a loss in the first year but a modest profit in the second year. However, the absence of a profit and loss account in the filings limits insight into revenue trends, cost structure, and operational scalability.

3. Positive Indicators:

• Recent Profitability Improvement: The company reversed a prior year loss of £25,128 to a profit of £11,829 in the latest period, suggesting some operational progress or better cost control.
• No Filing or Regulatory Issues: All statutory filings (accounts and confirmation statements) are up to date with no overdue returns or penalties visible, indicating compliance and governance discipline.
• Single Controlling Director with Full Ownership: The sole director and 100% shareholder, Mr. Andrew David Oliver, maintains full control, which may facilitate swift decision-making.

4. Due Diligence Notes:

• Request detailed management accounts or profit and loss statements to assess revenue generation, gross margins, and cost drivers.
• Investigate the nature and terms of the significant current liabilities, particularly "Other creditors" (£226,396), to understand creditor composition and payment schedules.
• Assess cash flow forecasts and working capital management to evaluate the company’s ability to meet short-term obligations and fund growth.
• Confirm whether any related party transactions or shareholder loans underpin the current financing structure.
• Consider the impact of the company’s SIC code (47789 - Other retail sale of new goods in specialised stores) on market conditions and competitive pressures.