Company Number: 14375632

Analysis Date: 2025-07-20 12:34 UTC

1. Risk Rating: HIGH
   Feathers & Sprinkles Limited exhibits a high risk profile primarily due to its minimal turnover, ongoing operating losses, and negative net current assets indicating liquidity strain.

2. Key Concerns:

• Negative Net Current Assets: The company reported net current liabilities of £93 at year-end 2024, signalling potential challenges meeting short-term obligations despite a small scale of operations.
• Operating Loss: A loss of £6,298 on turnover of just £17,659 highlights unprofitable business activities in its first full year, raising concerns about sustainability.
• Limited Scale and Financial Resilience: As a micro-entity incorporated recently (Sept 2022) with minimal fixed assets (£1,536) and very low shareholders' funds (£1,443), the company has limited financial buffer and capital base.

3. Positive Indicators:

• Compliance and Timely Filings: The company is current on its accounts and confirmation statement filings with no overdue submissions, indicating good regulatory compliance.
• Single Director and PSC Consistency: Mrs Sarah-Jade Miller is both sole director and 75-100% shareholder, simplifying governance and decision-making.
• No Indications of Insolvency or Formal Proceedings: The company is active and not in liquidation, administration, or receivership.

4. Due Diligence Notes:

• Review the business plan and cash flow forecasts to ascertain the viability and timeline to profitability given current losses and tight liquidity.
• Investigate the nature of the cost of materials (£23,957), which exceeds turnover, to understand cost control and pricing strategy.
• Examine any related party transactions or director loans that may impact financial stability.
• Confirm the company's ability to secure additional funding or credit lines if liquidity worsens.
• Assess market conditions and competitive landscape in the artistic creation/event planning sector to gauge growth prospects.