Company Number: 13917392

Analysis Date: 2025-07-29 20:41 UTC

1. Risk Rating: MEDIUM
   The company has shown improvement from net current liabilities and negative net assets in 2023 to positive net current assets and net assets in 2024. However, the absolute values remain very small, indicating limited financial buffer and potential vulnerability to unforeseen expenses or revenue disruptions. The micro-entity scale and minimal asset base suggest moderate solvency and liquidity risk.

2. Key Concerns:

• Minimal Financial Cushion: Net current assets of £1,139 and net assets of £1,139 as of 28 February 2024 are very low, leaving little room to absorb financial shocks.
• Negative Position in Previous Year: The 2023 accounts showed net current liabilities of £-1,290 and negative net assets, which could indicate past operational or cash flow challenges.
• Single Director and PSC Concentration: Ownership and control are fully concentrated in one individual, which may increase governance and succession risks without broader oversight.

3. Positive Indicators:

• Recent Improvement in Financial Position: Movement from negative net assets and working capital in 2023 to positive figures in 2024 suggests some operational stabilization.
• Compliance Status: The company is active, with no overdue accounts or confirmation statement filings, indicating good regulatory compliance.
• Consistent Single Employee Operation: The company operates with one employee (likely the director), which may indicate controlled overheads and lean operations suitable for a micro-entity.

4. Due Diligence Notes:

• Cash Flow Analysis: Further investigation into the company's cash flow statements or bank statements would clarify liquidity beyond the balance sheet snapshot.
• Revenue and Profitability Trends: As only balance sheet data is available, reviewing turnover and profitability figures would help assess operational sustainability.
• Director Background and Controls: Given the sole director/PSC setup, understanding the director's business track record, related party transactions, and controls is important.
• Business Model Validation: Verification of the business model's viability in the retail mail order/internet sales sector, including customer base and competition, would be prudent.