Company Number: SC711252

Analysis Date: 2025-07-20 18:54 UTC

1. Risk Rating: MEDIUM
   Justification: The company is relatively new (incorporated 2021), with modest net assets (£7,191) and positive net current assets (£5,693), indicating some short-term liquidity. However, the accounts filing for the year ended 31 October 2022 is overdue, which raises governance concerns. The scale of operations is small (Average 2 employees), and current liabilities are significant relative to current assets, suggesting moderate liquidity risk.

2. Key Concerns:

• Overdue accounts filing for the 2022 financial year, potentially signaling compliance or management issues.
• Current liabilities (£32,808) are relatively high compared to current assets (£38,501), with limited cash reserves (£9,638), which could pressure short-term liquidity.
• Small scale of operations and limited asset base may constrain the company’s ability to absorb financial shocks or fund growth.

3. Positive Indicators:

• The company maintains positive net current assets and net assets, indicating solvency at the balance sheet date.
• Shareholders’ funds are positive (£7,191), reflecting retained earnings supporting the capital base.
• The company operates in a niche retail sector (mail order/internet retail) with an active website presence and social media engagement, suggesting operational activity and market engagement.

4. Due Diligence Notes:

• Investigate reasons for overdue accounts filing and assess if there are underlying operational or financial difficulties causing delays.
• Review cash flow statements and subsequent trading results post-October 2022 to evaluate liquidity trends and ability to meet short-term obligations.
• Clarify the nature and aging of creditors, particularly the large tax and social security liabilities (£15,227), to assess any regulatory compliance or payment risks.
• Confirm the current status of directors and any changes in ownership or control since the last filings.
• Evaluate the business model robustness given the small size and limited asset base, including dependency on key customers or suppliers.