Company Number: 14403434

Analysis Date: 2025-07-20 11:04 UTC

1. Risk Rating: LOW
   The company demonstrates a solid net asset position with positive working capital and no overdue filings, indicating low immediate risk to solvency and liquidity.

2. Key Concerns:

• Limited operating history: Incorporated in October 2022 with just over one year of trading data, limiting trend analysis reliability.
• Small scale: Very modest fixed assets and employee count, implying potential vulnerability to market fluctuations or operational disruption.
• Lack of profit & loss disclosure: The directors chose not to file profit & loss accounts, reducing transparency on operational profitability and cash flow generation.

3. Positive Indicators:

• Strong improvement in net current assets from £4.8k to £62.4k within one year, driven by increased cash and stock levels.
• No overdue statutory filings (accounts or confirmation statements), reflecting good regulatory compliance.
• Shareholders’ funds increased substantially from £4.8k to £63.2k, suggesting capital injections or retained earnings accumulation.
• Active online presence and clear business description support operational legitimacy.

4. Due Diligence Notes:

• Obtain or review management accounts or internal financials to assess profitability and cash flow beyond balance sheet figures, given absence of P&L filing.
• Investigate the nature of current liabilities (~£103k) to understand repayment terms and potential refinancing risk.
• Verify stock valuation methodology and turnover, as high stock levels (approx. £86k) relative to assets could impact liquidity if slow-moving.
• Clarify the capital structure and any shareholder loans or related party transactions, especially given the two directors are also significant shareholders.
• Confirm no director disqualifications or legal proceedings against the company or its officers.