Company Number: 15038630

Analysis Date: 2025-07-20 12:54 UTC

1. Risk Rating: HIGH
   Justification: The company shows net current liabilities and negative net assets as of its latest financial year, indicating potential solvency and liquidity issues. The small amount of cash relative to current liabilities and the negative shareholders' funds underscore financial distress risk.

2. Key Concerns:

• Negative working capital: Current liabilities (£68,264) exceed current assets (£60,957) by £7,307, posing liquidity challenges to meet short-term obligations.
• Negative net assets and shareholders' funds (£-725), likely arising from accumulated losses, suggesting erosion of capital base.
• Recent director turnover and changes in control structure within less than a year may reflect governance or operational instability.

3. Positive Indicators:

• The company is relatively new (incorporated July 2023) and has filed accounts and confirmation statements on time, demonstrating compliance with filing requirements.
• Tangible fixed assets of £6,582 provide some asset backing, though modest in scale.
• The company operates in retail and wholesale sectors with diversified product lines (beverages, confectionery, fruit & vegetables), which may offer multiple revenue streams.

4. Due Diligence Notes:

• Confirm the nature and terms of current liabilities, especially "other creditors" (£60,548), to assess urgency and risk profile of payables.
• Investigate cash flow trends and sources of working capital to understand liquidity management and whether the company has access to credit facilities or shareholder funding.
• Review reasons behind director resignations and change in shareholding/control, assessing potential impact on strategic direction and operational continuity.
• Examine turnover and profitability details not disclosed here to evaluate operational viability and prospects.
• Assess stock valuation and turnover rate given large stock holdings (£45,893) relative to cash and liabilities.