Company Number: 13680287

Analysis Date: 2025-07-29 18:03 UTC

1. Risk Rating: MEDIUM
   The company displays a significant improvement in net current assets and net assets over the latest financial year, indicating a positive turnaround in financial position. However, the low cash balance relative to debtors and current liabilities suggests potential liquidity strain. The absence of an audit and abridged accounts filing limits detailed financial transparency.

2. Key Concerns:

• Liquidity Risk: Cash on hand is only £795 versus current liabilities of £92,731, which may challenge the company’s ability to meet short-term obligations despite improved working capital driven by high debtor balances.
• Debtor Concentration: Debtors amount to £130,759, a substantial portion of current assets. The collectability and aging of these receivables are critical to assess to ensure cash inflows.
• Limited Financial Disclosure: The company filed unaudited abridged accounts and did not disclose the profit and loss account, restricting comprehensive assessment of operational profitability and cash flow generation.

3. Positive Indicators:

• Improved Working Capital: Net current assets moved from a negative £44,948 to a positive £56,716 within the year, reflecting better short-term financial health.
• Growth in Equity: Shareholders' funds increased substantially from £17,708 to £113,227, indicating retained earnings accumulation or capital injection.
• Stable Operations: The company has increased its average number of employees from 1 to 2, suggesting some operational expansion or stability.

4. Due Diligence Notes:

• Investigate the nature and collectability of debtor balances to verify actual cash flow potential and credit risk.
• Review any off-balance sheet liabilities or contingent obligations that might impact liquidity or solvency.
• Obtain management accounts or internal financial reports for a more detailed view of profitability and cash flow trends, given the lack of audited accounts.
• Confirm compliance with filing requirements and verify that no regulatory or governance issues exist.
• Assess the business model and market position within the retail sector to understand sustainability and growth prospects.