Company Number: 13911217

Analysis Date: 2025-07-29 20:34 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and shareholders' funds but has experienced a significant reduction in working capital and net assets over the last year. The micro-entity status limits detailed financial disclosures, and the company is relatively new, incorporated in 2022, which increases uncertainty. Overall, solvency appears adequate currently, but the declining asset base warrants caution.

2. Key Concerns:

• Declining net current assets: Net current assets dropped from £5,886 in 2023 to £1,489 in 2024, indicating tightening liquidity.
• Limited financial history: Only two full years of accounts available, restricting trend analysis and assessment of operational sustainability.
• Single director and shareholder: 100% control by one individual may pose governance and continuity risks, especially given the company's small scale and limited resources.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, indicating good regulatory discipline.
• Positive net assets: Despite decline, net assets remain positive, suggesting the company is not insolvent.
• Industry focus: The SIC code 47730 (dispensing chemist in specialised stores) indicates a niche market potentially supporting stable future revenues if managed well.

4. Due Diligence Notes:

• Investigate reasons behind the decrease in current assets and net assets between 2023 and 2024, including any one-off events or operational challenges.
• Review cash flow statements if available to assess liquidity and ability to meet short-term obligations.
• Understand the business model and revenue generation to evaluate operational sustainability, considering only one employee and the director's role as locum pharmacist.
• Verify the director’s background and any potential conflicts of interest given sole ownership and control.