Company Number: 12561105

Analysis Date: 2025-07-20 16:28 UTC

1. Risk Rating: HIGH

Justification: The company’s latest filed accounts for the year ending 30 April 2024 show a material deterioration in financial position, with negative net current assets and net liabilities of £5,026. This indicates the company is insolvent on a balance sheet basis and may struggle to meet its short-term obligations.

2. Key Concerns:

• Negative net current assets: Current liabilities exceed current assets by £5,026 as of April 2024, raising immediate liquidity risks.
• Progressive decline in net assets: Net assets have decreased from £121 in 2020 to a negative £5,026 in 2024, signaling weakening financial health.
• No employees reported: The absence of employees suggests a potentially very small or non-operational business which may impact operational sustainability.

3. Positive Indicators:

• Timely filing: The company’s accounts and confirmation statements are filed on time, indicating compliance with statutory requirements.
• Single controlling director with full ownership: Clear ownership and control by Mrs. Maria Stavarache which may simplify governance and decision-making.
• Micro-entity accounting: The company qualifies as a micro entity, reducing reporting complexity and costs.

4. Due Diligence Notes:

• Investigate underlying cause of negative net assets and current liabilities exceeding current assets: Are these due to operational losses, loans, or creditor payment delays?
• Clarify business operations and revenue streams as no employees are reported and the company operates in several retail SIC codes.
• Assess director’s plans to restore solvency or restructure debts, including any personal guarantees or additional capital injections.
• Review cash flow statements and any off-balance sheet liabilities if available to better understand liquidity position.
• Confirm if there are any regulatory, tax, or creditor disputes that may impact continuation.