Company Number: 14617207

Analysis Date: 2025-07-29 19:27 UTC

1. Risk Rating: HIGH
   The company exhibits significant financial weakness as evidenced by net liabilities of £400 and negative shareholders’ funds. With minimal current assets (£254) against current liabilities (£654), liquidity is constrained, raising solvency concerns for meeting short-term obligations.

2. Key Concerns:

• Negative net assets and shareholders’ funds indicate the company is trading at a loss and has an eroded capital base.
• Working capital deficit (-£400) suggests potential cash flow difficulties to support ongoing operational expenses.
• Recent rapid director turnover within a short time frame may reflect governance or management instability.

3. Positive Indicators:

• The company is current on filing accounts and confirmation statements, demonstrating regulatory compliance to date.
• The business operates in an e-commerce retail sector (mail order/Internet sales), which can have scalable growth potential.
• Ownership and control appear consolidated under a single individual with majority shareholding, facilitating decision-making.

4. Due Diligence Notes:

• Investigate the nature and cause of the company’s losses and negative equity, including any unreported liabilities or contingencies.
• Review cash flow statements or bank records to assess liquidity beyond the balance sheet snapshot.
• Clarify reasons behind the rapid director resignations and appointments in early 2025 to evaluate governance stability.
• Confirm whether the company has secured additional funding or plans to improve its financial position.
• Assess business model viability given the start-up status and low asset base.