Company Number: 12846977

Analysis Date: 2025-07-20 12:02 UTC

1. Risk Rating: HIGH
   The company demonstrates persistent and significant net liabilities over recent years, with negative net assets of £8,396 as of the latest accounts. Current liabilities substantially exceed current assets, resulting in a negative working capital position of £65,020, indicating solvency and liquidity risks.

2. Key Concerns:

• Solvency Risk: The company’s net liabilities position and negative shareholders’ funds suggest that its liabilities exceed its assets, raising concerns about its ability to meet long-term obligations.
• Liquidity Concerns: Current liabilities (£68,250) far exceed current assets (£3,230), with no indication of incoming cash flows or short-term liquid assets aside from a modest cash balance, indicating potential cash flow difficulties.
• Operational Stability: The company has only one employee (the director), and despite intangible asset additions, there is no evidence of operational scale or diversified income streams. The company’s industry (non-specialised wholesale trade) typically requires working capital, which is currently negative, potentially impacting ongoing operations.

3. Positive Indicators:

• The company is current with its filing obligations; no overdue accounts or confirmation statements are reported, indicating compliance with statutory requirements.
• The director holds full ownership and control, which may facilitate swift decision-making in restructuring or capital injection if necessary.
• The company has intangible assets that have increased slightly, suggesting some investment in intellectual property or similar assets that may have future value.

4. Due Diligence Notes:

• Investigate the nature and recoverability of the intangible assets reported (£55,891) to assess their true value and whether they can be leveraged or monetized.
• Review the company's cash flow forecasts and operational plans to determine how it intends to manage or reduce its current liabilities and negative working capital.
• Assess any contingent liabilities or off-balance sheet commitments that may exacerbate financial strain.
• Confirm whether the director has provided any financial support or guarantees to the company given the negative equity position.
• Understand the underlying causes of sustained losses or negative reserves since incorporation and evaluate the business model’s viability in the wholesale sector.