Company Number: 13216218

Analysis Date: 2025-07-29 12:24 UTC

1. Risk Rating: HIGH
   The company exhibits a significant solvency risk as reflected by persistent negative net current assets and net liabilities over the last two years. The financials indicate an inability to meet short-term liabilities with current assets, raising concerns about meeting obligations.

2. Key Concerns:

• Negative Working Capital: The company’s current liabilities (£1,413) substantially exceed current assets (£537 in 2024), resulting in negative net current assets of -£876, signaling liquidity pressure.
• Negative Net Assets: Total net assets are negative (-£876 in 2024), indicating the company’s liabilities surpass its assets, a red flag for solvency and investor confidence.
• No Employees & Minimal Share Capital: The company has reported zero employees and a nominal share capital of £10, which may suggest limited operational capacity and financial buffer to sustain business activities.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with its annual accounts and confirmation statement filings, showing regulatory compliance and governance discipline.
• Stable Director Presence: The current director, Mr. Muhammad Usman, has been in place since October 2021, reflecting some management continuity.
• Micro Entity Status: As a micro-entity, the company benefits from simplified reporting requirements, which can reduce administrative burden.

4. Due Diligence Notes:

• Examine Cash Flow and Funding Sources: Investigate how the company is financing its liabilities given the negative working capital and absence of employees.
• Review Business Model Viability: Assess whether the company’s business (retail sale via mail order or internet) is generating revenue or if it is in early development or dormant stage.
• Director Background and Related Party Transactions: Given the small scale and ownership concentration, verify if any intercompany or director-related loans or guarantees exist that could impact financial stability.