Company Number: 12790959

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

1. Risk Rating: HIGH
   The company exhibits persistent net liabilities and negative net current assets over multiple years, indicating ongoing solvency challenges. The absence of positive net assets and continuing net current liabilities suggest an inability to comfortably meet short-term obligations.

2. Key Concerns:

• Negative Net Assets and Net Current Assets: The company’s net liabilities have increased from £-1,630 in 2021 to £-2,862 in 2024, with current liabilities consistently exceeding current assets, signaling deteriorating financial health.
• Sustainability of Operations: The company’s financials show no improvement in working capital or net assets over four years, raising concerns about operational viability and potential reliance on external financing or director support.
• Lack of Profit and Loss Information: As a micro-entity filing under FRS 105, the company has not delivered a profit and loss account, limiting visibility on revenue, profitability, or cash flow generation, which are critical for assessing business sustainability.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with its accounts and confirmation statement filings, demonstrating regulatory compliance.
• Stable Management: The company has had a single director since incorporation, with no indication of director disqualifications or governance issues.
• Micro Entity Status: The company benefits from simplified reporting requirements, which can reduce administrative burden and costs.

4. Due Diligence Notes:

• Investigate Cash Flow and Revenue Generation: Obtain detailed internal management accounts or bank statements to assess actual cash flows and operational performance.
• Understand Funding Sources: Clarify whether the company is receiving director loans, shareholder funding, or other financial support to cover liabilities.
• Review Business Model Viability: Assess market position, customer base, and scalability of the mail order/Internet retail activity (SIC 47910) to determine future prospects.
• Confirm No Outstanding Regulatory or Legal Issues: Verify that there are no pending investigations, penalties, or director disqualifications beyond publicly available records.
• Examine Potential Related Party Transactions: Given the negative equity, check for any undisclosed related party transactions or financial arrangements impacting solvency.