Company Number: 13971901

Analysis Date: 2025-07-29 18:57 UTC

1. Risk Rating: LOW
   The company shows a positive net asset position with improving net current assets and no overdue filings, indicating a stable financial and compliance status for its age.

2. Key Concerns:

• Taxation and Social Security Creditors: There is a significant increase in taxation and social security liabilities from £22,402 in 2023 to £49,001 in 2024, which may suggest a cash flow strain or timing issues in settling statutory obligations.
• High Debtors Balance: Trade and other debtors total £78,777, which is a substantial portion of current assets and may pose liquidity risk if collection is delayed.
• Limited Scale and Employee Base: With only one employee and assets concentrated in goodwill and debtors, the company may have operational dependence on key individuals and limited diversification of resources.

3. Positive Indicators:

• Improved Working Capital: Net current assets increased significantly from £5,169 in 2023 to £101,367 in 2024, reflecting enhanced liquidity.
• Strong Equity Position: Shareholders’ funds grew substantially from £52,638 to £143,826, demonstrating retained profitability or capital injection.
• On-Time Filings: Both accounts and confirmation statements are filed timely, indicating good regulatory compliance and governance.
• Established Market Presence: The company operates in a niche wholesale market with an active website claiming longstanding operation since the 1990’s, suggesting brand recognition and market experience.

4. Due Diligence Notes:

• Investigate the nature and aging profile of trade debtors and other debtors to assess collectability and exposure to bad debts.
• Clarify reasons behind the rise in taxation and social security liabilities and confirm payment plans or reserves for these obligations.
• Review the sustainability of the business model given the single employee and asset composition, including dependency on goodwill and key personnel.
• Confirm the accuracy of the goodwill valuation and amortization policy as it represents a large portion of fixed assets.
• Verify the turnover and profit trends (not provided) to understand revenue stability and operational performance beyond balance sheet snapshots.