Company Number: 13157839

Analysis Date: 2025-07-20 16:59 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net assets and net current liabilities over multiple years, indicating solvency and liquidity stress. The cumulative losses have not been offset by any equity injection beyond the nominal share capital, raising concerns on its ability to meet obligations.

2. Key Concerns:

• Solvency Risk: Net assets remain negative at £-1,491 as of 31 Dec 2023, improving from £-3,435 in 2022 but still indicative of insolvency.
• Liquidity Issues: Current liabilities (£14,098) exceed current assets (£12,607), resulting in negative net working capital, which may impair the company’s ability to settle short-term debts.
• Sustainability of Operations: The company has accumulated losses reflected in the negative profit and loss reserve (£-1,591). There is no evidence of profitability or significant capital injection to stabilize finances.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, suggesting regulatory compliance and good governance in terms of statutory obligations.
• Cash Position: Cash on hand (£8,107) forms a significant portion of current assets, indicating some liquidity buffer despite the overall working capital deficit.
• Industry Activity: The company operates in specialised design and retail of leather goods and textiles, which can have niche market potential if managed effectively.

4. Due Diligence Notes:

• Investigate the company’s business model and revenue streams to assess future profitability potential and plans for addressing accumulated losses.
• Examine creditor terms and any arrangements for repayment or restructuring given the persistent negative working capital.
• Review director’s strategic plans or any external financing options to improve solvency and liquidity.
• Confirm the completeness and accuracy of financial data, including any off-balance sheet liabilities or contingent risks.