Company Number: 14717972

Analysis Date: 2025-07-29 18:17 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as reflected by negative net current assets and negative shareholders' funds shortly after incorporation. The company is in its first financial year with limited operational history, and its current liabilities exceed current assets by £11,354, resulting in a net deficit of £8,579 in total equity.

2. Key Concerns:

• Negative Working Capital: Current liabilities of £29,084 significantly exceed current assets of £17,730, indicating potential cash flow issues to meet short-term obligations.
• Negative Shareholders' Funds: The company’s net assets are negative (-£8,579), signaling that liabilities exceed assets and the company is technically insolvent on a balance sheet basis.
• Dependence on Director Support: The going concern statement explicitly notes reliance on continued director support to avoid withdrawals of debts owed to them, highlighting fragile financial stability and possible cash injections needed to sustain operations.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with statutory filing deadlines for accounts and confirmation statements, indicating good regulatory compliance.
• Active Trading Status: The company is active and has a registered website showcasing its eco-conscious product offering, suggesting some operational activity and market presence.
• Small Micro-Entity Status: This reduces administrative burden and audit costs, which may be beneficial for a start-up in early stages with limited resources.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans or debts to understand the extent of reliance on director funding and repayment risks.
• Review cash flow forecasts and business plans to assess the path to profitability and whether current liabilities can be managed or restructured.
• Confirm no director disqualifications or adverse governance issues given the recent appointments and shareholding structure.
• Verify the sustainability of operations given the retail clothing niche and competitive landscape.