Company Number: 14224996

Analysis Date: 2025-07-20 11:05 UTC

1. Risk Rating: HIGH

The company exhibits key solvency and liquidity issues, with net current liabilities and negative net assets reported in the latest accounts despite being a very recent start-up. This raises significant concerns about the company's ability to meet its short-term obligations and sustain operations.

2. Key Concerns:

• Negative Net Current Assets (-£699) and Negative Net Assets (-£1,299): Indicates the company owes more than it owns in the short term and overall, suggesting financial distress.
• Micro-Entity with Only One Employee: Limited operational scale and resources, potentially heightening operational risk and vulnerability.
• Recent Incorporation (July 2022) with Early Financial Distress: Early stage companies usually require sufficient capital or cash flow to survive initial years; this company’s financials indicate undercapitalization or poor cash flow management.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with statutory filing deadlines for accounts and confirmation statements, which is a positive governance indicator.
• Active Status: The company is currently active and not in liquidation or administration.
• Industry Niche: Operating in a specialized retail sector (flowers and plants) which can have steady local demand if managed well.

4. Due Diligence Notes:

• Clarify the Discrepancy in Net Current Assets and Net Assets Reporting: The balance sheet notes negative net current assets and negative net assets, but the summary financial information reports positive figures (£699 net current assets and £1,299 net assets). This inconsistency requires investigation.
• Examine Cash Flow and Working Capital Dynamics: Given negative working capital, assess cash flow statements and any short-term borrowing or creditor arrangements.
• Review Business Model Viability: Considering the small scale and financial position, assess revenue streams, customer base, and any planned capital injections.
• Director Background Check: Verify the director’s experience and any associated entities to evaluate management quality.
• Check for Contingent Liabilities or Off-Balance Sheet Obligations: Absence of detailed notes limits understanding of potential hidden risks.