Company Number: 13942658

Analysis Date: 2025-07-20 13:40 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows a net asset positive position but has significant negative net current assets indicating short-term liquidity stress. The company is a micro-entity with limited financial history and a sole director/shareholder, which increases operational risk.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£14,528) exceed current assets (£5,146) by £9,382 as of the latest accounts, suggesting potential cash flow constraints to meet short-term obligations.
• Operational Concentration: Single director and sole shareholder controlling 75-100% shares may pose governance and continuity risks.
• Limited Financial History: Incorporated in 2022 with only two years of filed accounts, restricting trend analysis and validation of business sustainability.

3. Positive Indicators:

• Net Positive Equity: Despite liquidity issues, net assets have increased significantly to £15,613 from £559, indicating some growth in fixed assets or capital injection.
• Compliance: All statutory filings (accounts and confirmation statements) are up to date with no overdue notices or penalties.
• Micro-Entity Status: Reduced filing complexity and audit exemptions reduce operational overhead and compliance costs.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess if they are trade creditors, loans, or accrued expenses and their repayment terms.
• Review cash flow statements or management accounts if available to understand operational cash generation and working capital management.
• Assess the business model and market position given its SIC codes (online retail and food product manufacturing) and whether growth is sustainable with existing resources.
• Evaluate director’s background and any related party transactions given sole control and potential conflicts of interest.
• Confirm no undisclosed contingent liabilities or regulatory issues given the limited public information.