Company Number: 12749878

Analysis Date: 2025-07-20 18:37 UTC

1. Risk Rating: MEDIUM
   The company demonstrates modest net asset growth and maintains positive shareholders' funds, but its net current assets have decreased from a positive £3,576 in 2023 to a negative £2,428 in 2024, indicating emerging liquidity concerns. The micro-entity scale and single-director structure limit operational and financial robustness.

2. Key Concerns:

• Liquidity Position: The shift from positive to negative net current assets suggests the company may struggle to meet short-term obligations without additional financing or cash inflows.
• Small Scale and Single Employee: Operating with only one employee and minimal fixed assets could constrain capacity to scale or manage operational risks effectively.
• Concentration of Control: The sole director and 75-100% shareholder concentration poses governance and continuity risks if unforeseen issues arise with the individual.

3. Positive Indicators:

• Consistent Net Asset Growth: Shareholders’ funds have increased steadily from £6 in 2020 to £4,151 in 2024, reflecting retained earnings or capital injections over time.
• No Overdue Filings: The company is current with statutory accounts and confirmation statements, indicating compliance with regulatory requirements.
• Active Status and Clear Industry Focus: The company is active in retail and wholesale sectors with clear SIC codes, showing an operational business model.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities causing the negative net current assets to assess short-term solvency risks.
• Review cash flow statements or bank statements (not available here) for actual liquidity and operational cash generation.
• Confirm the robustness of governance given the single director/shareholder model and check for any potential related party transactions.
• Assess customer concentration and revenue stability given the company’s size and sector.
• Verify whether the increase in fixed assets in 2024 relates to capital expenditure that will improve operational capacity.