Company Number: 12730715

Analysis Date: 2025-07-29 16:27 UTC

1. Risk Rating: MEDIUM
   The company shows a modest recovery in net assets after two consecutive years of negative equity, but remains a micro entity with limited assets and low turnover. The net current assets position has improved to a small positive figure (£837) in the latest year, indicating some short-term solvency improvement. However, limited fixed assets and small operating scale suggest vulnerability to cash flow shocks.

2. Key Concerns:

• Volatility in Net Assets: The company experienced negative net assets (£-1,498) in both 2022 and 2023, which raises concerns about past solvency and financial stability. Although 2024 shows a positive net asset position, the margin remains very thin.
• Low Turnover and Asset Base: Annual turnover (£25k-£28k) is low, with zero fixed assets, indicating limited operational scale and investment in business infrastructure. This can constrain growth and resilience.
• Minimal Share Capital and Equity Cushion: Share capital is nominal (£100), and shareholders' funds are minimal (£837), providing little buffer against losses or unforeseen liabilities.

3. Positive Indicators:

• Improved Working Capital Position: The latest accounts show net current assets positive at £837 compared to prior years’ negative working capital, suggesting better short-term liquidity management.
• Up-to-Date Filings and Compliance: No overdue accounts or confirmation statements, indicating regulatory compliance and governance diligence.
• Stable Management and Ownership: Directors have been in place since incorporation with no adverse records reported; a named PSC controls 25-50% voting rights with rights to appoint/remove directors, suggesting clear control.

4. Due Diligence Notes:

• Profit & Loss and Cash Flow Details: Obtain detailed P&L and cash flow statements to assess profitability trends, cash generation, and working capital cycles.
• Customer and Supplier Concentration: Understand the client base and supplier relationships given the small scale and retail nature, to identify dependency risks.
• Future Business Plans and Capital Injection: Investigate management’s strategy for growth or capital strengthening given the low equity base and limited assets.
• Director Background Checks: Confirm no undisclosed director disqualifications or adverse conduct records.
• Market Position and Competition: Assess the company’s competitive environment within the retail sector classified under SIC 47190 to evaluate sustainability.