Company Number: 14722024

Analysis Date: 2025-07-20 13:02 UTC

1. Risk Rating: HIGH

   The company exhibits a high risk profile primarily due to its very limited operational and financial history, minimal net assets, and negative working capital when considering prepayments. The financial data and organizational information suggest an early-stage entity with significant uncertainties in meeting obligations and sustaining operations.

2. Key Concerns:

   • Negative Working Capital After Prepayments: While stated net current assets are £1,578, inclusion of prepayments (£7,500) raises current assets to £12,842 against current liabilities of £11,264. However, prepayments are not liquid assets and cannot be used to settle liabilities immediately, indicating potential liquidity pressure.

   • Minimal Net Assets and Lack of Profit & Loss Data: Net assets total only £1,578, and no profit and loss account has been filed. This prevents assessment of profitability or cash flow generation, critical for evaluating operational sustainability.

   • Recent Director and Control Changes: The sole director and person with significant control changed within the last year, which may suggest ownership or management instability. The new controlling director holds 75-100% shares and voting rights, concentrating control and possibly increasing governance risk.

3. Positive Indicators:

   • Compliance with Filing Requirements: The company is up to date with its statutory filings, including accounts and confirmation statements, indicating adherence to regulatory obligations.

   • Micro-Entity Status: The company benefits from simplified accounting and reporting requirements, reducing administrative burden and costs at this early stage.

   • No Indication of Insolvency or Enforcement Actions: The company is active and not in liquidation, administration, or receivership, with no public record of director disqualifications or regulatory sanctions.

4. Due Diligence Notes:

   • Request Full Profit & Loss Information: Since the profit and loss account is not publicly filed, obtain management accounts or internal financial statements to assess revenue, expenses, and cash flow.

   • Investigate Nature and Timing of Prepayments: Understand the composition and recoverability of prepayments to clarify true liquidity position.

   • Clarify Business Model and Revenue Generation: Given the SIC code relates to retail sale of non-specialized stores with food, beverages or tobacco predominating, verify operational status, business plan, and market positioning.

   • Assess Impact of Recent Change in Control: Examine circumstances around director resignation and appointment to evaluate governance stability and potential strategic shifts.