Company Number: 13170268

Analysis Date: 2025-07-20 13:59 UTC

1. Risk Rating: HIGH
   Bamboo Light Store Ltd exhibits significant financial stress as evidenced by negative net assets and net current liabilities in the latest financial year. This raises serious solvency concerns and indicates potential difficulties in meeting short-term obligations.

2. Key Concerns:

• Negative Net Assets and Working Capital: As of 29 February 2024, net assets stand at -£576 and net current liabilities at -£676, indicating the company’s liabilities exceed its assets, which is a red flag for solvency risk.
• Declining Financial Position: The company moved from positive net assets (£125) in 2023 to negative in 2024, showing deterioration in financial health within a single year.
• Minimal Financial Buffer: The company operates as a micro entity with very limited share capital (£205) and current assets (£936), which provides little cushion against operational or financial shocks.

3. Positive Indicators:

• Filing Compliance: Accounts and confirmation statements are filed on time with no overdue filings, indicating good regulatory compliance and governance practices.
• Active Trading Status: The company remains active with a functioning website and ongoing operations in a defined niche (retail sale of specialised clothing - SIC 47710), suggesting operational continuity.
• Stable Management: The current director, Mr Dan Clapham, has been in place since incorporation, providing some stability in leadership.

4. Due Diligence Notes:

• Examine Cash Flow and Profitability Trends: Detailed review of underlying cash flow statements and profit & loss accounts to understand the drivers of the financial decline and assess if losses are operational, financing, or exceptional in nature.
• Investigate Related Party Transactions or Debt Arrangements: Clarify if any director loans, related party transactions, or contingent liabilities exist that may impact solvency.
• Assess Business Model Viability: Given the micro-entity status and small scale, evaluate the business model’s sustainability and growth prospects, including market positioning and competitive environment.
• Confirm No Off-Balance Sheet Liabilities: The accounts note no off-balance sheet disclosures, but further inquiry is warranted to confirm completeness.
• Review Director Conduct and Governance: While no disqualifications are noted, ongoing monitoring of governance and any changes in management or control is advised.