LITTLE BEAR POST LTD

Executive Summary

Little Bear Post Ltd currently exhibits financial distress with negative net assets and working capital deficits, raising significant solvency and liquidity concerns. However, the company maintains good regulatory compliance and clear ownership structure. Further investigation into its operational viability and financial details is recommended before considering investment.

LITTLE BEAR POST LTD - Analysis Report

Company Number: 14006764

Analysis Date: 2025-07-29 19:24 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (£-927 as of 31 March 2024) and negative net current assets (£-447), indicating solvency and liquidity concerns. The deterioration from a positive net asset position in the previous year suggests operational or financial strain.

2. Key Concerns:

• Solvency Risk: The net liabilities position reflects that the company’s obligations exceed its assets, raising concerns about its ability to meet long-term commitments.
• Liquidity Constraints: Negative working capital indicates potential cash flow difficulties to cover short-term liabilities, posing a risk to ongoing operations.
• Operational Sustainability: The company has no employees reported and limited asset base, suggesting minimal operational scale or possible dependency on directors for activities, which may limit business resilience.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Active Status: The company remains active since incorporation in 2022 without any indications of insolvency proceedings.
• Clear Ownership and Control: Two directors own equal substantial shares and have voting rights, which may simplify decision-making and strategic alignment.

4. Due Diligence Notes:

• Review detailed profit and loss information not filed in the accounts to understand revenue generation and cost structure given the absence of P&L filing.
• Investigate the nature and timing of creditors and accrued liabilities that have increased, to assess if they are trade payables or other financial obligations.
• Confirm the business model and revenue streams given the SIC codes related to artistic creation, book publishing, and paper stationery manufacture, and whether these are being actively monetized.
• Assess directors’ plans or funding arrangements addressing the negative equity and working capital deficit.
• Verify any contingent liabilities or off-balance sheet risks not disclosed in the micro-entity accounts.