Company Number: 14458001

Analysis Date: 2025-07-20 12:04 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net assets (£-11,642) and significant net current liabilities (£-30,260) as of the latest financial year end (31 March 2024), indicating potential solvency and liquidity concerns. The business is very young (incorporated late 2022) and classified as a micro-entity, limiting available financial data and increasing uncertainty.

2. Key Concerns:

• Negative net assets and working capital deficit suggest the company may struggle to meet short-term obligations.
• Rapid increase in current liabilities from £10,094 (2023) to £68,106 (2024) without corresponding asset growth raises liquidity risk.
• Small scale and limited operational history restrict assessment of sustainable business model and cash flow generation.

3. Positive Indicators:

• Directors are properly appointed and appear compliant with filing deadlines (no overdue accounts or confirmation statements).
• The company operates in a defined retail niche (retail of music and video recordings), which could have focused market potential.
• Employment stable at 2 persons, suggesting controlled operational scale relative to resources.

4. Due Diligence Notes:

• Investigate reasons for large increase in current liabilities and whether these are trade payables, loans, or other debts.
• Review cash flow statements or internal management accounts (if available) to assess liquidity dynamics beyond balance sheet snapshots.
• Assess business plan viability and market positioning, given negative equity and micro-entity status.
• Confirm absence of director disqualification or regulatory compliance issues beyond Companies House filings.
• Clarify nature of fixed assets (£18,618) and potential for realization if required.