Company Number: 13835872

Analysis Date: 2025-07-20 14:58 UTC

1. Risk Rating: LOW
   Lavender Eight Ltd demonstrates a solid balance sheet with positive net assets, strong working capital, and no overdue filings, indicating low immediate risk in solvency, liquidity, and regulatory compliance.

2. Key Concerns:

• Reliance on a single director and 100% shareholder control (Katie Remblance) introduces governance concentration risk.
• Relatively modest share capital (£102) could limit financial flexibility.
• The company’s industry classification (47990 - other retail sales not in stores) suggests potential vulnerability to market changes in e-commerce or non-store retail, which may affect operational stability.

3. Positive Indicators:

• Net current assets remain positive and stable (£28,609 in 2024 vs. £29,766 in 2023), reflecting good short-term liquidity.
• Cash reserves are healthy (£23,076 in 2024) relative to current liabilities (£9,467), indicating adequate immediate cash flow.
• No overdue accounts or confirmation statements; filings are timely, showing good regulatory compliance.
• The company has grown net assets from £41,373 in 2023 to £42,726 in 2024, indicating some retained earnings and operational profitability.
• Fixed assets have increased, suggesting reinvestment in the business.

4. Due Diligence Notes:

• Review the detailed profit and loss accounts (not filed publicly) to confirm profitability trends and cash flow from operations.
• Investigate the director’s loan account balance (£4,952) to understand any related party transactions and their terms.
• Assess the stock valuation methodology and turnover rates for the £15,000 stock holding to ensure it is not overvalued or obsolete.
• Confirm the deferred tax liability increase (£3,312 in 2024 vs £2,723 in 2023) and its impact on future cash flows.
• Evaluate the risks associated with single-person control and the absence of additional directors or officers.