Company Number: 13004086

Analysis Date: 2025-07-20 12:04 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant liquidity issues with negative net current assets, very low current assets relative to liabilities, and minimal share capital. The absence of detailed profitability data and the small asset base raise concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Liquidity Shortfall: Net current assets are negative (£-3,498 in 2023), indicating insufficient liquid assets to cover short-term liabilities.
• Minimal Capitalization: Share capital is only £30, suggesting limited financial buffer and possibly minimal financial backing from shareholders.
• Operational Scale and Sustainability: The company is a micro entity with only one employee and fixed assets declining from £5,200 to £3,900, indicating potential downsizing or underinvestment.

3. Positive Indicators:

• Compliance and Timely Filing: No overdue accounts or confirmation statements; filings are up to date, demonstrating adherence to regulatory requirements.
• Active Business Presence: The company operates in an e-commerce retail sector (SIC 47910) with an active website and social media presence, supporting ongoing commercial activity.
• Stable Governance: Multiple directors and persons with significant control are clearly identified, with no disqualifications or governance issues noted.

4. Due Diligence Notes:

• Review detailed profit and loss accounts and cash flow statements (not provided) to assess operational profitability and cash generation.
• Investigate reasons for consistent negative working capital and whether supplier terms or payment delays are impacting liquidity.
• Confirm the business model viability given the small asset base and limited employee count; assess customer base, revenue streams, and growth plans.
• Verify any contingent liabilities or off-balance sheet commitments that could exacerbate financial risks.
• Evaluate director backgrounds and related party transactions, given the concentration of control among few individuals.