EXPLODED SWEETS LTD

Executive Summary

Exploded Sweets Ltd demonstrates a sound initial financial position with positive net assets and liquidity, alongside good compliance with filing obligations. Its young age and concentrated ownership warrant careful monitoring of operational performance and governance practices. Overall, current data suggests low solvency and liquidity risk, but further financial detail is needed to confirm sustainable profitability.

EXPLODED SWEETS LTD - Analysis Report

Company Number: 14849739

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

1. Risk Rating: LOW
   The company shows solid net assets and working capital positions relative to its size and age, with no overdue filings and active governance. There are no immediate solvency or liquidity red flags based on the latest available data.

2. Key Concerns:

• Limited operating history: Incorporated in 2023, the company has less than two years of financial performance, limiting trend analysis and increasing uncertainty.
• Concentration of control: Two directors each control 25-50% of shares and voting rights, which could present governance risks if disagreements arise.
• Tax and social security creditor balance: Current liabilities include a sizeable £80,390 for taxation and social security, which requires monitoring to ensure timely settlement and avoid penalties.

3. Positive Indicators:

• Strong liquidity position: Cash holdings of £168,192 exceed current liabilities of £137,722, yielding positive net current assets of £61,866, indicating good short-term solvency.
• Positive net assets and shareholders’ funds of £104,872 reflect initial capital and retained earnings supporting financial stability.
• Up-to-date statutory compliance: No overdue accounts or confirmation statements, and exemptions correctly claimed for audit due to size.
• Clear business focus in e-commerce and specialized retail sectors with an active, well-presented website and defined market niche.

4. Due Diligence Notes:

• Review detailed turnover and profit figures not disclosed in the summary to assess operational profitability and cash flow generation.
• Verify the nature and timing of the taxation and social security liabilities to ensure no risk of enforcement action or unexpected cash outflows.
• Assess directors’ backgrounds and related party transactions given their substantial control and possible influence on company strategy.
• Monitor stock valuation policies and turnover given the nature of perishable confectionery products to avoid inventory obsolescence risk.
• Confirm ongoing operational plans and growth strategy given the company’s young age and market position.