Company Number: 13148110

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

1. Risk Rating: HIGH
   The company exhibits consistent negative net current assets and negative shareholders’ funds over four consecutive years, indicating an ongoing solvency risk. The minimal share capital (£100) further limits its financial buffer.

2. Key Concerns:

• Persistent Negative Working Capital: The net current liabilities, although improving, remain negative (£-15 as of 2024), suggesting potential liquidity constraints.
• Negative Shareholders’ Funds: Shareholders’ funds have been negative since incorporation and have only marginally improved, indicating accumulated losses or undercapitalisation.
• Micro-Entity Status with Limited Financial Disclosure: Being a micro-entity limits the detail available in financial statements, restricting visibility into profitability and cash flow, which increases due diligence complexity.

3. Positive Indicators:

• Timely Filing Compliance: Accounts and confirmation statements are up to date, reducing regulatory compliance concerns.
• Single Director and PSC Alignment: Miss Ozel Sari holds full ownership and directorship, which may facilitate swift decision-making and strategic alignment.
• Slight Improvement in Current Assets: Current assets have increased from £169 in 2021 to £1,107 in 2024, indicating some growth in asset base or cash equivalents.

4. Due Diligence Notes:

• Examine Underlying Causes of Negative Equity: Investigate the nature of losses or liabilities causing negative shareholders’ funds and whether these are recoverable or sustainable.
• Cash Flow Analysis: Obtain management accounts or cash flow statements to assess operational liquidity beyond balance sheet snapshots.
• Business Model Viability: Verify revenue streams and profitability from the company’s activities in manufacturing and online retail, and assess market position given limited staffing (1 employee).
• Director's Financial Commitment: Confirm whether additional capital injections or guarantees are in place to support solvency.
• Future Funding Plans: Understand any plans for refinancing or capital raising to mitigate ongoing losses.