Company Number: 13526449

Analysis Date: 2025-07-20 18:38 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits extremely low turnover and net assets, with a continuing downward trend in revenue over recent years. Current assets and net current assets are negligible, raising concerns about its ability to meet short-term obligations and sustain operations.

2. Key Concerns:

• Minimal Financial Scale: Turnover dropped sharply from £12,533 in 2021 to just £645 in 2024, indicating a significant decline in business activity.
• Very Limited Working Capital: Current assets and net current assets stand at £7 for 2024, suggesting minimal liquidity and potential cash flow difficulties.
• Single Director and Shareholder: The company is closely held by one individual with 75-100% control, which may limit governance robustness and increase operational risk.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and governance diligence.
• Legal Status Active: The company remains active and not in liquidation or administration, showing it is still a going concern from a legal perspective.
• Micro Entity Reporting: The company benefits from simplified reporting standards appropriate for its size, reducing administrative burdens.

4. Due Diligence Notes:

• Investigate Revenue Decline Causes: Understand the reasons behind the steep drop in turnover and assess if this reflects a strategic pivot, market exit, or operational issues.
• Cash Flow Analysis: Request more detailed cash flow information to verify liquidity beyond the reported balance sheet figures.
• Business Model Sustainability: Evaluate the viability of the retail mail order/internet sales model given the low activity levels and whether the company has prospects for growth or recovery.
• Director Background Check: Although no disqualifications are noted, further inquiry into the director’s experience and capacity to manage the company effectively is advisable.