Company Number: 15163614

Analysis Date: 2025-07-20 18:45 UTC

1. Risk Rating: MEDIUM
   The company shows a very low net asset base (£1,439) with significant long-term liabilities (£60,036), indicating potential solvency risk despite being a micro entity. The balance sheet reveals a precarious financial position, but no overdue filings or governance issues are noted.

2. Key Concerns:

• High Long-Term Liabilities Relative to Equity: The company has creditors due after more than one year totaling £60,036, which dwarfs its net assets of £1,439, raising questions about its ability to service debt long-term.
• Negative Net Working Capital Presentation: Although net current assets are positive (£17,080), current liabilities of £15,814 combined with low current assets (£32,894) in a startup context may tighten liquidity if cash inflows are not steady.
• Newly Incorporated with Limited Operational History: Incorporated in September 2023 and filing first accounts for the year ending September 2024, the company lacks an established trading track record to validate operational sustainability.

3. Positive Indicators:

• No Overdue Filings or Compliance Issues: Accounts and confirmation statement are up to date, indicating sound regulatory compliance.
• Director with Clear Control and Responsibility: Single director with significant influence, simplifying governance and decision-making.
• Micro-Entity Status Simplifies Reporting: Reduced disclosure requirements minimize administrative burdens, suitable for early-stage operation.

4. Due Diligence Notes:

• Investigate the nature and terms of the £60,036 long-term liabilities—creditors due after more than one year—to assess repayment risks and covenants.
• Review cash flow forecasts or management accounts to evaluate liquidity trends beyond the snapshot balance sheet.
• Confirm the business model viability in the retail mail order/internet sector given limited current assets and no employees.
• Verify any related party transactions or director loans that may impact financial stability.
• Assess any contingent liabilities or off-balance-sheet commitments not disclosed in filleted accounts.