Company Number: 14522116

Analysis Date: 2025-07-29 19:27 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets but has a relatively narrow margin between current assets and current liabilities, indicating moderate solvency risk typical for a micro-entity early in its life cycle.

2. Key Concerns:

• Narrow Working Capital Buffer: Net current assets of £5,215 against liabilities of £51,785 suggest limited liquidity cushion to manage short-term obligations.
• Lack of Profit & Loss Disclosure: Absence of P&L data limits assessment of operational profitability and cash flow generation, restricting visibility into ongoing business sustainability.
• Newly Incorporated Entity: Established in December 2022, the company has a limited operating history which increases uncertainty regarding business stability and resilience.

3. Positive Indicators:

• Compliance Status: All statutory filings (accounts and confirmation statements) are up to date with no overdue returns or accounts, indicating good regulatory compliance.
• Positive Net Assets: Shareholders’ funds of £6,601 indicate the company is not trading insolvent as of the last accounts date.
• Ownership and Management: Clear ownership structure with two directors who are also significant shareholders, suggesting aligned management incentives.

4. Due Diligence Notes:

• Obtain profit and loss statements or management accounts to evaluate revenue generation, expense control, and cash flow.
• Review cash flow forecasts and banking arrangements to assess liquidity management given tight working capital.
• Investigate the nature of current liabilities (£51,785) to understand payment terms and any concentration risks.
• Verify business model viability in the retail mail order/internet sales sector and assess customer base stability.
• Confirm if any off-balance sheet liabilities or contingent risks exist not reflected in micro-entity accounts.