Company Number: 12714047

Analysis Date: 2025-07-29 16:28 UTC

1. Risk Rating: HIGH
   The company’s financials reveal extremely thin net assets (£117 in 2024) and very narrow net current assets (£617), indicating minimal buffer to meet short-term liabilities. The significant deterioration in net assets from £14,116 in 2021 to £117 in 2024 raises solvency concerns. The micro-entity status limits financial disclosure, restricting detailed assessment.

2. Key Concerns:

• Solvency Pressure: Net assets have declined sharply over recent years, nearing zero, signaling potential inability to absorb losses or meet obligations if conditions worsen.
• Liquidity Constraints: Net current assets are minimal (£617), indicating limited working capital, which may constrain day-to-day operations and cash flow flexibility.
• Profitability and Sustainability: Lack of detailed P&L data and continued erosion of equity suggest ongoing operational challenges or losses that threaten long-term viability.

3. Positive Indicators:

• Compliance: The company is current with statutory filings and accounts, with no overdue returns or accounts, indicating good governance and regulatory compliance.
• Stable Workforce: The average number of employees remains steady at 3, supporting operational continuity.
• Active Online Presence: Maintains an active website and sales platform, which supports ongoing commercial activity and market access.

4. Due Diligence Notes:

• Obtain detailed profit and loss statements or management accounts to assess profitability trends and cash flow dynamics.
• Review creditor aging and payment terms to evaluate liquidity risk and supplier relationships.
• Investigate provisions for liabilities noted at £500 in 2024 to understand contingent or potential obligations.
• Assess directors’ plans or capital injection intentions to address declining equity and support business sustainability.
• Verify the nature of the business model and competitive positioning given the SIC codes related to online retail sales.