Company Number: 12545223

Analysis Date: 2025-07-20 12:22 UTC

1. Risk Rating: MEDIUM
   The company demonstrates consistent net asset value and shareholder funds growth over recent years, indicating some financial stability. However, a significant red flag arises from the apparent inconsistency in the reported current liabilities and net assets figures in the latest accounts, suggesting possible data issues or misclassification that may mask true solvency exposure. The absence of employees and limited share capital also contribute to operational risk.

2. Key Concerns:

• Apparent Discrepancy in Liabilities and Net Assets: The micro-entity balance sheet notes current liabilities of £36,020 but reports net assets of £15,775, which contradicts typical accounting relationships. This inconsistency requires clarification to assess true solvency.
• Minimal Share Capital: The company has only £1 of share capital, indicating limited equity buffer to absorb losses or support operations.
• No Employees: The company reports zero employees, which raises questions about operational capacity and sustainability of the business model, especially given its retail activity.

3. Positive Indicators:

• Timely Filing Compliance: Both accounts and confirmation statements are up to date with no overdue filings, indicating good governance and compliance practices.
• Consistent Net Asset Growth: Despite the liabilities issue, net assets and shareholders’ funds have generally increased from £9,133 in 2020 to £15,775 in 2024, reflecting some positive financial momentum.
• Experienced Director: The sole director is a certified chartered accountant, suggesting a capable individual overseeing financial management and compliance.

4. Due Diligence Notes:

• Confirm the accuracy and classification of current liabilities and net assets in the 2024 accounts to reconcile apparent contradictions and assess solvency properly.
• Review cash flow statements or bank statements (if available) to evaluate liquidity and working capital management, as micro-entity accounts provide limited detail.
• Investigate the operational model given zero employees—determine if the business relies on contractors, outsourcing, or is dormant in practice.
• Assess dependency on the sole director for management and control, and any risks associated with single-person governance.
• Verify the website and contact details provided to gauge market presence and customer engagement given the retail SIC code.