Company Number: 12895367

Analysis Date: 2025-07-19 12:04 UTC

1. Risk Rating: HIGH
   The company shows persistent and material negative net assets and net current liabilities over multiple years, indicating ongoing solvency and liquidity concerns.

2. Key Concerns:

• Consistent Negative Net Assets: The net assets have deteriorated from -£14,179 in 2020 to -£22,335 in 2024, signaling erosion of shareholder equity and potential insolvency risks.
• Negative Working Capital: Current liabilities exceed current assets by £22,559 as of 2024, indicating the company may struggle to meet short-term obligations without external financing or asset liquidation.
• Limited Scale and Resources: The company is micro-entity sized with only 2 employees and minimal fixed assets (£224), which may limit operational resilience and ability to recover financially.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and operational transparency.
• Stable Directorship and Ownership: The sole director, who also holds 75-100% control, has been in place since incorporation with no adverse conduct records noted, suggesting stable governance.
• Micro-Entity Reporting: Utilization of simplified accounting standards reduces administrative burden and costs, appropriate for the company size.

4. Due Diligence Notes:

• Investigate the cause of persistent losses or negative reserves and whether there is a viable turnaround plan or external funding support.
• Review cash flow statements and bank facilities to assess liquidity management and ability to meet creditor demands.
• Evaluate customer base, sales trends, and market position within the internet retail sector (SIC 47910) to understand operational sustainability.
• Confirm no contingent liabilities or undisclosed debts that could further impair solvency.
• Discuss with management the strategic outlook and any planned capital injections or restructuring.