Company Number: 12828282

Analysis Date: 2025-07-20 12:05 UTC

1. Risk Rating: HIGH
   The company demonstrates significant solvency risk with persistent and increasing net liabilities, negative net current assets, and shareholders' funds deficit. The financial data indicates an inability to meet short-term obligations without external support.

2. Key Concerns:

• Negative net assets and shareholders' funds: Net liabilities have nearly doubled from £45,856 in 2022 to £84,079 in 2023, indicating worsening financial stability.
• Severe working capital deficit: Current liabilities exceed current assets by £84,254 in 2023, signalling liquidity issues and potential cash flow constraints.
• No employees reported: Zero staff suggests limited operational capacity or a possible dormant state in terms of business activity, raising questions about ongoing sustainability.

3. Positive Indicators:

• Compliance with filing requirements: Accounts and confirmation statements are up to date, with no overdue filings or penalties reported.
• Active trading status: The company remains active with an operational website and a trading SIC classification related to retail and wholesale of clothing, implying ongoing business activity.
• Director with relevant professional background: The sole director is an accountant, which may bode well for financial oversight.

4. Due Diligence Notes:

• Investigate the causes behind persistent and growing negative net assets, including any off-balance sheet liabilities or contingent risks.
• Assess cash flow statements and creditor payment history to understand liquidity pressures in detail.
• Clarify operational status given zero employees reported—determine whether the business is genuinely active, reliant on outsourcing, or effectively dormant.
• Review any related party transactions or director loans that may impact financial position.
• Confirm whether the company has access to external funding or financial support mechanisms to address solvency issues.
• Examine sales performance and market position given the retail and wholesale SIC codes to evaluate revenue generation prospects.