Company Number: SC798240

Analysis Date: 2025-07-19 12:22 UTC

1. Risk Rating: HIGH
   Justification: The company has been trading for just over one year and already shows a significant net current liability position (£19,332) relative to very low cash reserves (£578). Moreover, shareholders' funds are negative (£-19,432), indicating accumulated losses or initial funding shortfall. The small scale and early stage of the business, combined with a high level of current liabilities, suggest elevated solvency and liquidity risks.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£19,910) far exceed current assets (£578), potentially impacting the company’s ability to meet short-term obligations.
• Negative Shareholders’ Funds: Equity is negative, which may reflect cumulative losses or insufficient capital injection, raising concerns over solvency.
• Limited Operating History and Scale: Incorporated in February 2024, the company is newly established with only one employee and no detailed profit and loss information disclosed, limiting visibility into operational performance and sustainability.

3. Positive Indicators:

• Compliance with Filing Obligations: The company’s accounts and confirmation statement are up to date with no overdue filings, indicating adherence to regulatory requirements.
• Clear Ownership and Control: Single director and 100% shareholder control by Ms Nicole Celestine Bates simplifies governance and decision-making processes.
• Business Activity in Growth Sector: Engaged in internet retail (SIC 47910), a sector with potential for scalability and growth if well managed.

4. Due Diligence Notes:

• Investigate the nature and maturity of the current liabilities (£19,910) to assess payment terms and any risk of default.
• Request detailed profit and loss statements and cash flow forecasts to evaluate revenue generation and operational sustainability.
• Clarify the source of funds supporting negative equity and whether further capital injections or financing arrangements are planned.
• Review any contingent liabilities or off-balance sheet commitments not disclosed in the accounts.
• Assess the director’s experience and capacity to grow a start-up in the competitive online retail sector.