Company Number: 14076976

Analysis Date: 2025-07-29 18:59 UTC

1. Risk Rating: HIGH
   The company demonstrates significant solvency and liquidity concerns, reflected by persistent negative net current assets and shareholders’ funds over its short operating history. The worsening financial position from 2023 to 2024 indicates increasing financial distress.

2. Key Concerns:

• Negative Working Capital: The company’s current liabilities (£6,081 in 2024) significantly exceed current assets (£21 in 2024), resulting in a net current liability position of £-6,060, which raises immediate liquidity risks.
• Declining Financial Position: Shareholders’ funds have deteriorated from £-2,051 in 2023 to £-6,060 in 2024, suggesting accumulated losses and potential erosion of capital.
• Limited Operational Scale and History: Incorporated in 2022 and classified as a micro-entity with only 2 employees, the company’s small scale and very limited asset base may constrain its ability to absorb financial shocks or secure external financing.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is current with both its annual accounts and confirmation statement filings, indicating good regulatory compliance.
• Clear Ownership and Management: Single significant control (100% ownership by Mr Terence Agiadis) and stable directorship since incorporation provide clarity on governance and decision-making.
• No Indication of Insolvency Proceedings: The company is active, not in liquidation, administration, or receivership, which suggests ongoing operations despite financial challenges.

4. Due Diligence Notes:

• Investigate the nature and causes of the negative retained earnings and working capital deficit, including reviewing cash flow statements and creditor arrangements if available.
• Assess the company’s business model viability in the washing and dry-cleaning sector given the minimal asset base and financial losses.
• Clarify any contingent liabilities or off-balance-sheet obligations that might exacerbate financial risks.
• Confirm whether the 2025 name change reflects a strategic reorientation or restructuring that could impact future performance.