Company Number: 13168799

Analysis Date: 2025-07-29 20:59 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, with net liabilities of £24,772 as of the latest financial year end, indicating that liabilities exceed assets. The minimal positive net current assets (£1,228) are insufficient to offset long-term liabilities, and the company’s equity remains deeply negative.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has persistent negative equity (£-24,772 in 2024 and £-32,712 in 2023), indicating accumulated losses and erosion of capital.
• Reliance on Director Loans: Substantial director loans (£33,687 short-term) form a large part of current liabilities, suggesting dependence on insider funding to meet operational needs.
• Poor Liquidity Position: Very low cash balance (£477) relative to current liabilities (£49,249) poses liquidity risk, potentially impairing the ability to meet short-term obligations without additional financing.

3. Positive Indicators:

• Improvement in Net Current Assets: The company moved from negative net current assets (£-6,712 in 2023) to a slightly positive position (£1,228 in 2024), showing some operational improvement in working capital management.
• Consistent Employee Base: Maintains a small, stable workforce (average 3 employees) which could help control overhead costs.
• No Filing or Compliance Issues: Accounts and confirmation statement filings are up to date, indicating compliance with regulatory requirements.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans, especially repayment schedules and covenants, to assess refinancing risk.
• Review cash flow statements and bank facilities to understand liquidity management and whether additional capital injections or borrowing are expected.
• Clarify business sustainability plans given ongoing accumulated losses and negative equity.
• Confirm if any contingent liabilities or off-balance sheet obligations exist that may further impact solvency.
• Assess market positioning and revenue trends in retail sector under SIC 47110 to gauge operational viability.