Company Number: 14375609

Analysis Date: 2025-07-29 16:44 UTC

1. Risk Rating: HIGH
   Justification: The company shows significant net liabilities with creditors exceeding net assets by £3,075 as of 2024 and previously by £14,568 in 2023 and 2022. The balance sheet indicates ongoing negative equity and current liabilities exceeding current assets, raising solvency and liquidity concerns for a micro-entity with minimal assets.

2. Key Concerns:

• Persistent negative net assets and net current liabilities indicate potential insolvency risk.
• Current liabilities significantly exceed current assets, implying limited liquid resources to meet short-term obligations.
• The company has only one employee and no fixed assets, suggesting limited operational scale and capital base, raising questions on sustainability.

3. Positive Indicators:

• The company is up to date with filings, including accounts and confirmation statements, indicating compliance with statutory requirements.
• The director and majority shareholder is actively involved and resides at the registered office address, which may suggest hands-on management.
• The company’s micro-entity status reduces reporting complexity, potentially lowering administrative burdens.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities, especially the large creditors’ balance, to assess repayment plans or risk of default.
• Review cash flow statements or bank statements (if available) to evaluate liquidity beyond the balance sheet snapshot.
• Examine business operations and revenue streams to understand how the company plans to improve its financial position and whether there is a viable business model.
• Confirm no undisclosed related party transactions or loans from directors or shareholders that could impact financial stability.
• Assess market conditions for retail sale via stalls and specialized clothing stores, and any impact on business viability.