Company Number: 14006946

Analysis Date: 2025-07-29 20:09 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, with persistent net current liabilities exceeding £57,000 and negative net assets. The absence of cash and minimal current assets relative to current liabilities indicate inability to meet short-term obligations from available resources.

2. Key Concerns:

• Liquidity Deficiency: Cash balance is zero as of the latest accounts, with current liabilities vastly exceeding current assets (£563 vs. £57,706). This suggests immediate cash flow challenges.
• Negative Net Assets and Shareholders’ Funds: Both deteriorated from approximately -£51,000 to -£57,000 year-on-year, indicating accumulated losses and erosion of equity.
• Minimal Operating Scale and Workforce: Only one employee on average during the last year and a very small scale operation. This may raise questions about operational sustainability and growth potential.

3. Positive Indicators:

• Up-to-date Filing and Compliance: No overdue accounts or confirmation statements; the company complies with statutory filing deadlines, reducing regulatory risk.
• Clear Ownership and Governance: Single director and majority ownership through a parent company (Hoopsy Pty Ltd) controlled by the same individual, providing clarity on control and decision-making.
• Niche Market Focus: Operating in eco-friendly pregnancy tests with an active website and a clear mission, which could attract socially conscious consumers and investors.

4. Due Diligence Notes:

• Investigate the company’s cash flow projections and working capital management plans to assess how it intends to address the liquidity deficit.
• Review related party transactions, especially loans from directors and creditors, to understand funding sources and terms.
• Assess product market traction and revenue generation potential given the early stage and current financial strain.
• Confirm any contingent liabilities or off-balance sheet commitments not disclosed in the accounts.