Company Number: 13951565

Analysis Date: 2025-07-20 13:49 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net assets and net current liabilities, indicating a weak financial position and potential solvency concerns.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £11,012 as of 31 March 2024, a slight improvement but still significantly negative compared to prior years (£14,603 negative). This suggests accumulated losses and erosion of shareholder funds.
• Poor Liquidity Position: Current liabilities (£49,858) substantially exceed current assets (£4,739), resulting in a large negative working capital of £44,784. This raises concerns about the company’s ability to meet short-term obligations as they fall due.
• Small Scale and Limited Operating History: Incorporated in 2022 with a micro entity filing status and only 2 employees, the company is in the early stages of operations. The small scale and negative financial trends may indicate operational instability or challenges in scaling profitably.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are filed on time with no overdue deadlines, reflecting regulatory compliance and good governance in reporting.
• Active Website and Market Presence: The company maintains an active website promoting creative lampshades and homewares, suggesting ongoing trading activity and marketing efforts.
• Single Controlling Shareholder/Director: Angela Dennerley holds 75-100% ownership and directorship, which may facilitate streamlined decision-making and clear accountability.

4. Due Diligence Notes:

• Investigate the company’s business model viability and cash flow forecasts to understand how it plans to reverse negative equity and improve liquidity.
• Review any related party transactions or director loans that might be supporting ongoing operations.
• Assess the sufficiency of working capital and whether additional funding (equity or debt) is required imminently.
• Confirm whether any contingent liabilities or off-balance sheet obligations exist that could exacerbate solvency risk.
• Evaluate the competitive positioning and customer base in the retail and wholesale textiles sectors to determine operational sustainability.