Company Number: 13616374

Analysis Date: 2025-07-20 13:52 UTC

1. Risk Rating: HIGH
   The company demonstrates persistent negative net assets and net current liabilities over multiple years, indicating ongoing solvency and liquidity difficulties.

2. Key Concerns:

• Negative Net Assets: The company’s net assets remain negative (£-2,200 in 2024), reflecting accumulated losses or insufficient equity backing.
• Working Capital Deficit: Current liabilities exceed current assets by £3,020 (2024), signaling potential cash flow constraints to meet short-term obligations.
• No Employees / Operational Scale: The absence of employees and minimal fixed assets suggest limited operational capacity and possible reliance on external resources or owner-director involvement, which may impact sustainability.

3. Positive Indicators:

• Recent Improvement: The net liability position improved from £-4,090 in 2023 to £-2,200 in 2024, indicating some reduction in financial strain.
• Compliance: The company is current with its statutory filings (accounts and confirmation statement), suggesting adherence to regulatory requirements.
• Micro-entity Status: The business size is small, with limited filing obligations, which may reduce administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature of current liabilities to assess if any are overdue or subject to enforcement action.
• Review management plans or director commentary on how the company intends to restore positive equity and manage liquidity.
• Understand revenue streams and profit margins given the industry (internet retail) to evaluate operational viability.
• Confirm absence of related-party transactions or director loans that may affect financial stability.
• Ascertain if external funding or shareholder support is available to address negative equity.