Company Number: 12634750

Analysis Date: 2025-07-29 15:14 UTC

1. Risk Rating: MEDIUM
   The company shows a positive turnaround in net assets in the latest financial year, moving from negative equity to a small positive net asset position (£778). However, the net asset base remains minimal, and long-term liabilities remain substantial (£14,018). The company is small, operating with limited capital and a single director who also has full control, which concentrates operational risk.

2. Key Concerns:

• Low Capital Base and Minimal Equity: Share capital is only £1, and retained earnings are marginally positive, indicating limited financial buffer against unforeseen losses.
• Significant Long-Term Creditors: The company has £14,018 in liabilities due after one year, which is a high proportion relative to its net assets and could pressure solvency if cash flows weaken.
• Concentration of Control: One individual holds 75-100% ownership and voting rights, which may present governance risks and limits oversight.

3. Positive Indicators:

• Improved Net Current Assets: Net current assets increased to £14,605 in 2024 from previous years, suggesting better short-term liquidity management.
• No Overdue Filings: The company is current with its annual accounts and confirmation statement filings, indicating regulatory compliance.
• Positive Cash Position: Cash at bank improved to £22,553, supporting operational liquidity.

4. Due Diligence Notes:

• Review the nature and terms of the £14,018 long-term creditors to assess repayment risk and any covenants.
• Examine the cash flow statements and profit and loss data (not filed in abridged accounts) to understand operational profitability and cash generation.
• Investigate any director loan arrangements for repayment terms and impact on company liquidity.
• Assess the company’s business model and revenue trends given its SIC code (retail sale via mail order/internet) to understand sustainability and market position.
• Consider the impact of sole director control on decision-making and risk management procedures.