Company Number: 12875851

Analysis Date: 2025-07-29 20:42 UTC

1. Risk Rating: LOW
   The company shows consistent positive net current assets and net assets over the past four years with modest but steady growth. There are no overdue filings, no indication of insolvency, and the business remains active without liquidation or administration status.

2. Key Concerns:

• Limited scale and scope: Being a micro-entity with only 2 employees and relatively small asset base limits operational flexibility and capacity for large-scale growth or shock absorption.
• Profit and loss data unavailable: Absence of a profit and loss account filing restricts insight into profitability, revenue trends, and cash flow dynamics, which are critical for assessing operational sustainability.
• Single control point: The sole director and 75-100% owner concentration in one individual increases governance risk and potential vulnerability if that individual is incapacitated or leaves.

3. Positive Indicators:

• Strong liquidity position: Current assets exceed current liabilities comfortably, with net current assets increasing slightly in the latest year, suggesting the ability to meet short-term obligations.
• Timely compliance: No overdue accounts or confirmation statements indicate good regulatory compliance and governance discipline.
• Stable equity growth: Shareholders’ funds have nearly doubled from £6,486 in 2021 to £13,141 in 2024, reflecting retained earnings or capital injection supporting solvency.

4. Due Diligence Notes:

• Obtain and review the profit and loss statements or management accounts to evaluate revenue streams, profitability, and cash flow sustainability.
• Investigate customer base, supply chain, and market position given the SIC code of retail in non-specialised stores to assess competitive risks and operational stability.
• Confirm absence of any director disqualifications or legal proceedings against the sole director to mitigate regulatory and governance risks.
• Review any contingent liabilities or off-balance sheet exposures not captured in micro-entity filings.