Company Number: 13001557

Analysis Date: 2025-07-29 14:34 UTC

1. Risk Rating: MEDIUM
   The company shows a moderate risk profile primarily due to its negative net current assets in the latest financial year, indicating potential liquidity constraints. However, the absence of overdue filings and ongoing active status somewhat mitigates immediate solvency concerns.

2. Key Concerns:

• Negative Working Capital: As of 30 November 2023, current liabilities (£28,288) exceed current assets (£23,814) by £4,474, suggesting potential short-term liquidity stress.
• Declining Net Assets: Net assets have decreased significantly from £19,332 in 2021 to £5,905 in 2023, indicating erosion of the company’s equity base.
• Reduced Operational Scale: The average number of employees has halved from 2 to 1 year-over-year, possibly reflecting downsizing or reduced operational activity, which may impact sustainability.

3. Positive Indicators:

• Timely Compliance: No overdue accounts or confirmation statement filings, reflecting good regulatory compliance and governance discipline.
• Stable Director and Ownership: Single director and 100% shareholder control by the same individual provides management stability and clear accountability.
• Micro-entity Status: Operating under micro-entity reporting reduces administrative burdens and implies relatively modest scale, which may reduce complexity and overheads.

4. Due Diligence Notes:

• Cash Flow Analysis: Obtain cash flow statements or bank confirmations to assess if the company is managing liquidity pressures effectively despite negative net current assets.
• Profitability Trends: Seek P&L data or management information to understand causes for equity decline and whether losses are operational or due to other factors.
• Customer and Supplier Relationships: Investigate business model viability given the SIC code for online retail and the reduction in operational scale.
• Director Background Check: Confirm no adverse records or disqualifications for Ms. Giedre Narkiene, although none are indicated here.
• Future Projections and Funding: Request management forecasts and any plans for capital injection or cost control to restore net asset levels and liquidity.