Company Number: 12666559

Analysis Date: 2025-07-20 19:15 UTC

1. Risk Rating: MEDIUM
   The company shows a modest positive net asset position with increasing equity over recent years, indicating some solvency. However, the presence of provisions for liabilities that exceed current net assets and frequent director turnover raise concerns about operational stability and potential hidden risks.

2. Key Concerns:

• Provisions for liabilities (£15,932 in 2023) exceed net current assets and represent a material obligation that may strain liquidity.
• High director turnover in 2024, with multiple director appointments and resignations within months, suggesting possible governance or operational instability.
• Limited financial disclosure consistent with micro-entity status, restricting detailed insight into cash flows or profitability, which hinders comprehensive risk assessment.

3. Positive Indicators:

• Net current assets have improved significantly from £37,349 in 2021 to £52,003 in 2023, reflecting growth in working capital.
• No overdue filings or confirmation statements, indicating compliance with statutory requirements and regulatory discipline.
• Shareholders’ funds have increased from £1 in 2022 to £23,582 in 2023, showing capital injection or retained earnings growth.

4. Due Diligence Notes:

• Investigate the nature and timing of the provisions for liabilities to understand potential solvency impact and whether these are contingent liabilities or ongoing disputes.
• Clarify reasons behind rapid director changes in 2024 and assess any impact on company strategy or risk exposure.
• Review cash flow statements and profit & loss accounts (not available here) to evaluate liquidity and operational profitability.
• Confirm the current business activity scope and client base given the SIC codes in retail mail order and wholesale trade, to gauge sustainability.