Company Number: 13264068

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

1. Risk Rating: HIGH
   Justification: The company exhibits significant net current liabilities and net asset deficits that have worsened over recent years, indicating substantial solvency and liquidity risks. Despite timely filings and active status, the financial position suggests inability to meet short-term obligations without external support.

2. Key Concerns:

• Persistent and increasing net current liabilities: From -£3,101 in 2021 to -£9,172 in 2024, current liabilities consistently exceed current assets by a large margin.
• Negative net assets/shareholders’ funds worsening over time: The net liability position deepened from -£2,937 in 2021 to -£9,172 in 2024, indicating accumulated losses or undercapitalization.
• Minimal capital base (£1 share capital) and no fixed assets as of 2024, limiting collateral or financial buffer for creditors.

3. Positive Indicators:

• Accounts and confirmation statements are filed on time, showing compliance with regulatory filing obligations.
• The company remains active with a single director and sole owner who appears engaged (no disqualifications or adverse records noted).
• Micro-entity classification implies limited complexity and possibly low overhead, which could be beneficial if the business model is viable.

4. Due Diligence Notes:

• Investigate the underlying cause of the large current liabilities and whether these are trade payables, loans, or other debts.
• Assess cash flow statements if available to determine operational cash generation capacity and liquidity trends beyond balance sheet.
• Review business model sustainability in the retail sale of flowers/plants sector, especially given absence of fixed assets and minimal current assets.
• Confirm whether there are any off-balance-sheet obligations or contingent liabilities not disclosed.
• Verify director’s plans for recapitalization or restructuring to address the negative equity position.