Company Number: 12976540

Analysis Date: 2025-07-29 20:35 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with persistent negative net current assets and net liabilities worsening over recent years. The very small share capital and reliance on director loans further increase financial risk.

2. Key Concerns:

• Negative Net Current Assets and Net Liabilities: The company shows net current liabilities of approximately £14,696 as of the latest accounts, deteriorating from £11,834 the prior year, indicating ongoing liquidity stress.
• Reliance on Director Loan: The company owes £18,292 to a director, suggesting operational funding is dependent on related-party financing rather than sustainable cash flow.
• Minimal Share Capital and Small Size: With only £2 share capital and classification as a micro-entity, the company has limited financial buffer to absorb losses or fund growth, increasing operational risk.

3. Positive Indicators:

• Filing Compliance: The company is up to date on its accounts and confirmation statement filings, showing no regulatory compliance issues currently.
• Stable Management: The same two directors have been in place since incorporation, which may indicate stable governance despite financial challenges.
• Active Online Presence: The company maintains an active website and contact information, which supports ongoing business operations in retail via internet.

4. Due Diligence Notes:

• Review cash flow statements and trading performance to clarify the cause of continuing losses and negative working capital.
• Investigate the terms and sustainability of the director loan, including any repayment plans or risk of further capital calls.
• Obtain management commentary or strategic plans addressing how the company intends to return to profitability and positive net assets.
• Confirm no undisclosed contingent liabilities or related party transactions beyond director loans that may affect risk.
• Assess customer base, market positioning, and business model viability in the retail mail order/internet sector.