Company Number: 15176781

Analysis Date: 2025-07-29 18:35 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits a negative working capital position with current liabilities significantly exceeding current assets, and minimal net assets. Being a newly incorporated micro-entity with only one employee and limited financial history further elevates the risk profile.

2. Key Concerns:

   • Liquidity Risk: Current assets (£6,011) are substantially lower than current liabilities (£15,296), resulting in a net current liability of £9,285, indicating potential difficulties in meeting short-term obligations.
   • Solvency and Financial Stability: Net assets stand at only £320, suggesting limited equity buffer and potential vulnerability to financial distress.
   • Operational Scale and Sustainability: The company has been incorporated recently (September 2023), has only one employee, and minimal fixed assets (£9,605), raising questions about the operational scale and ability to generate sustainable revenue.

3. Positive Indicators:

   • Compliance and Governance: The company is active with no overdue filings for accounts or confirmation statements, demonstrating adherence to regulatory requirements.
   • Clear Ownership and Management: Single director and 100% shareholder control by Mr. Kieran Norman Shawcross simplifies governance and decision-making.
   • Industry Classification: Engaged in retail sale in non-specialised stores (SIC 47190), which is a broad retail category potentially allowing for diverse revenue streams.

4. Due Diligence Notes:

   • Verify the nature and liquidity of current assets to assess how quickly they can be converted to cash to cover liabilities.
   • Review cash flow projections and any credit facilities to understand how the company plans to manage the negative working capital.
   • Investigate the business model, customer base, and revenue generation strategy given the recent incorporation and limited operating history.
   • Assess any related party transactions or director loans that might not be reflected in the micro-entity accounts.
   • Confirm the reason for the recent name change from THE FIRE HOUSE NW LIMITED to K STOVES LIMITED and any operational or ownership changes associated.