Company Number: 12727610

Analysis Date: 2025-07-20 11:16 UTC

1. Risk Rating: LOW
   The company presents a stable financial position within the micro-entity category, with positive net assets and no overdue filings. The modest scale of operations and steady net asset growth over four financial years reduce immediate solvency concerns.

2. Key Concerns:

• Negative Net Current Assets Presentation: The summary line showing "Net current assets (liabilities)" as negative £20,094 appears inconsistent with the calculation of current assets (£22,456) minus current liabilities (£42,550). This could be a typographical error or mislabeling; clarification is needed to confirm liquidity status.
• Small Share Capital: The nominal share capital of £1.00 indicates minimal shareholder equity, relying heavily on retained earnings or other reserves to support the business.
• Limited Scale and Disclosure: As a micro-entity, the company provides limited financial disclosure, restricting detailed analysis of cash flow or profitability trends.

3. Positive Indicators:

• Consistent Net Asset Growth: Net assets increased from £5,115 in 2020 to £7,856 in 2023, suggesting retained earnings accumulation and incremental strengthening of the balance sheet.
• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating good regulatory compliance.
• Stable Employee Base: Maintaining 2 employees consistently reflects operational continuity without signs of contraction.

4. Due Diligence Notes:

• Clarify Working Capital Position: Confirm the accuracy of net current assets figures and whether any short-term liabilities may pressure liquidity.
• Profitability and Cash Flow: Request management accounts or additional financial information to understand operational cash flows and profitability beyond balance sheet data.
• Director Background: Conduct standard checks on the sole director for any adverse records or disqualifications, although none appear in the provided data.
• Customer and Supplier Concentration: Assess dependency risks given the small size and retail nature of the business.