Company Number: 13286708

Analysis Date: 2025-07-20 13:50 UTC

1. Risk Rating: MEDIUM
   The company exhibits modest net current assets and positive net assets with no overdue filings, suggesting basic compliance and solvency. However, very low cash balances and significant director loans raise concerns about liquidity and operational funding.

2. Key Concerns:

• Liquidity Risk: Cash reserves are very low (£312 in 2024), which could impair the company's ability to meet immediate obligations, despite positive net current assets.
• Director Loan Exposure: The company has an unsecured, interest-free director loan of £1,827, which may indicate reliance on director funding for operations and potential related party risk.
• Limited Operational Scale & Employee Base: No employees reported and minimal share capital (£1), consistent with a micro-entity but raising questions about operational capacity and sustainability.

3. Positive Indicators:

• Improving Net Assets: Net assets increased from £1,153 in 2021 to £3,842 in 2024, indicating some growth in retained earnings or asset base.
• No Filing Delinquencies: Accounts and confirmation statements are filed on time, reflecting good regulatory compliance.
• Active Status with Clear Business Focus: Operating in retail internet sales (SIC 47910) with consistent financial reporting and a single director maintaining continuity.

4. Due Diligence Notes:

• Review underlying causes for low cash despite positive net current assets; assess debtor quality and collection policies.
• Investigate terms and rationale behind the director loan, including potential repayment plans and impact on cash flow.
• Obtain management information or forecasts to evaluate operational sustainability and revenue trends beyond balance sheet snapshots.
• Confirm no contingent liabilities or off-balance sheet obligations that could affect solvency.