Company Number: 14125360

Analysis Date: 2025-07-20 15:09 UTC

1. Risk Rating: MEDIUM
   The company shows modest net current assets and positive shareholders’ funds but also has a relatively high level of current liabilities compared to current assets. The presence of director loans and limited operating history increases short-term risk.

2. Key Concerns:

• Liquidity Pressure: Although cash balances improved substantially to £50,159 by May 2024, current liabilities are significant at £59,972, resulting in a narrow net current asset margin of £5,422. This tight working capital could constrain operational flexibility.
• Director Loan Dependency: Loans from directors of £5,800 are part of current liabilities, indicating some reliance on insider funding rather than external credit, which may affect going concern if internal support is withdrawn.
• Limited Operating History and Scale: Incorporated in May 2022, the company’s financial history is short and turnover or profitability data is not disclosed, limiting assessment of operational sustainability and growth trajectory.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: The company reported net assets of £5,422 and shareholders’ funds at the same level, indicating a positive equity position rather than net liabilities.
• Compliance with Filings: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Cash Position Improvement: Cash increased markedly from £100 in 2023 to over £50k in 2024, demonstrating improved liquidity management or capital injection.

4. Due Diligence Notes:

• Obtain detailed turnover and profit & loss data to assess actual business performance and sustainability.
• Clarify the nature and terms of director loans and whether these are expected to be repaid or converted to equity.
• Review debtor and creditor aging to evaluate cash conversion cycle and potential liquidity risks.
• Confirm business model viability given SIC code 47110 (retail sale in non-specialized stores with food predominating) and competitive market conditions.
• Assess any contingent liabilities or off-balance sheet risks not disclosed in the limited accounts.