Company Number: 15154424

Analysis Date: 2025-07-20 17:38 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (-£194) shortly after incorporation, indicating potential solvency concerns. The micro-entity balance sheet reveals current liabilities exceeding fixed assets, which is unusual and suggests financial instability.

2. Key Concerns:

• Negative Net Assets: The balance sheet reports net liabilities, implying the company’s obligations exceed its assets, raising questions about solvency.
• Limited Financial History: Incorporated in September 2023 with only one financial year completed, there is insufficient data to assess operational sustainability or cash flow trends.
• Single Director and Shareholder Control: Concentrated control by one individual (controlling 75-100% shares and voting rights) may present governance risks without checks and balances.

3. Positive Indicators:

• On-Time Filing Compliance: No overdue accounts or confirmation statements, showing regulatory compliance and good administrative discipline.
• Micro-Entity Reporting: Simplified accounting indicates the company is small-scale, potentially reducing complexity and overhead costs.
• Industry Classification: Operating in retail sale via internet/mail order, a sector with growth potential if managed well.

4. Due Diligence Notes:

• Verify the nature and cause of negative net assets to determine if it reflects start-up investment or operational losses.
• Review cash flow statements and bank balances (not provided) to assess liquidity and ability to meet short-term liabilities.
• Investigate business model viability and sales pipeline given the early stage of the company.
• Assess director’s background and capacity to fund or support the business through initial losses.
• Confirm absence of any contingent liabilities or off-balance sheet obligations.