Company Number: 12454869

Analysis Date: 2025-07-20 19:14 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, as demonstrated by negative shareholders' funds and current liabilities exceeding current assets. The rapid deterioration in balance sheet strength within a year raises material risk for investors.

2. Key Concerns:

• Negative Shareholders’ Funds: The company’s net equity fell sharply to -£31,378 in 2024 from a positive £65,692 in 2023, indicating erosion of net assets and potential insolvency risk.
• Liquidity Deficit: Current liabilities of £47,475 exceed current assets of £16,721, yielding a negative working capital position. This suggests difficulty in meeting short-term obligations without additional financing.
• Operational Downscaling: The average number of employees dropped from 9 to 0 in the latest period, implying either a cessation or significant cutback of core operations, threatening business sustainability.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement filings are up to date, indicating compliance with regulatory requirements.
• Single Director Ownership: The sole director holds 75-100% share ownership and voting rights, potentially enabling swift decision-making and responsiveness.
• Micro-Entity Reporting: The company benefits from simplified reporting obligations, reducing administrative burden and costs.

4. Due Diligence Notes:

• Investigate reasons behind the sharp decline in fixed assets from £53,568 to zero and corresponding loss of net worth. Assess if asset disposals were planned or forced.
• Clarify the cause for zero employees and whether the company has ceased trading or is in a dormant-like state despite being active.
• Review cash flow statements (if available) to understand liquidity management and funding sources for meeting current liabilities.
• Assess any contingent liabilities or off-balance sheet risks not evident in micro-entity accounts.
• Confirm if any related party transactions or director loans are impacting financial stability.
• Analyze market position and business model viability given SIC code 47990 (retail sales not in stores) and operational scale.