Company Number: 14226173

Analysis Date: 2025-07-20 12:02 UTC

1. Risk Rating: LOW
   Munchy’s Vapes Limited demonstrates a solid liquidity position with net current assets exceeding current liabilities by a comfortable margin. The company is solvent with positive shareholders’ funds and no overdue filings or signs of regulatory non-compliance. The small scale, single-employee operation limits operational complexity and risk.

2. Key Concerns:

• Limited Scale and Employee Base: The company operates with only one employee, which could pose operational risks due to dependency on key personnel.
• Revenue and Profitability Data Not Disclosed: The absence of an income statement limits the ability to assess profitability and operational cash flow trends.
• Single Product/Industry Focus: Specialising in retail sale of tobacco products, including vaping, subjects the company to regulatory and market risks inherent to this sector.

3. Positive Indicators:

• Strong Liquidity Position: Cash and current assets exceed current liabilities by over £8,000, indicating sound short-term financial health.
• Compliance and Timeliness: All statutory accounts and confirmation statements are filed on time, demonstrating good governance.
• Stable Growth in Net Assets: Shareholders’ funds have increased from £4,526 in 2023 to £8,208 in 2024, reflecting retained earnings or capital injection, signifying financial strengthening.

4. Due Diligence Notes:

• Request Full Profit & Loss Statement: To evaluate revenue streams, profitability, and cash flow sustainability.
• Assess Customer Base and Market Position: Understand sales concentration risk and competitive environment in tobacco/vape retail.
• Review Director and Management Background: Confirm absence of any director disqualifications or regulatory issues beyond publicly available data.
• Examine Regulatory Compliance: Particularly with tobacco and vaping product regulations, licenses, and any recent changes impacting operations.