Company Number: 13477323

Analysis Date: 2025-07-29 15:31 UTC

1. Risk Rating: HIGH
   The company shows a net current liabilities position as of the latest accounts (June 2024) with negative net assets (£-104), indicating financial distress. The trend from positive net assets in prior years to a deficit signals solvency concerns.

2. Key Concerns:

• Negative net assets and net current liabilities in the most recent financial year raise strong doubts on the company’s ability to meet short-term obligations.
• Absence of current assets (cash or equivalents) in 2024 suggests liquidity issues and potential cash flow constraints.
• Limited financial scale as a micro-entity with minimal capital base and only two employees, possibly constraining operational sustainability and ability to absorb shocks.

3. Positive Indicators:

• Company is current with statutory filings and accounts, indicating compliance with regulatory requirements.
• Directors remain in place since incorporation with no reported changes or disqualifications, suggesting stable governance.
• The business operates in a retail internet sales sector (SIC 47910), which can have relatively low fixed overheads.

4. Due Diligence Notes:

• Investigate reasons behind the sudden deterioration in net assets from £55 positive (2023) to -£104 (2024), including any unusual or one-off expenses, write-offs, or revenue decline.
• Review cash flow statements and bank statements (if available) to assess liquidity, working capital management, and operational cash generation.
• Understand the company’s business model, revenue streams, and market position to evaluate operational viability given the small scale and recent financial weakness.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations not reflected in the micro-entity accounts.
• Assess directors’ plans or commitments for refinancing, capital injection, or restructuring to restore solvency.