Company Number: 14587732

Analysis Date: 2025-07-19 11:55 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and net current liabilities, indicating solvency and liquidity challenges within its first full financial year of operation.

2. Key Concerns:

• Negative Net Assets: The company reports shareholders' funds of approximately -£6,772, indicating liabilities exceed assets. This raises concerns about the company’s solvency.
• Net Current Liabilities: Current liabilities (£61,557) exceed current assets (£47,985) by £13,572, suggesting potential short-term liquidity issues and difficulty meeting obligations as they fall due.
• Director’s Loan Account: A significant portion (£44,690) of current liabilities relates to directors’ loan accounts, which might indicate dependence on director funding to support operations, a risk if such support ceases.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with its accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Active Online Presence: A live website and social media engagement demonstrate efforts to market and develop the business.
• Industry Focus: Operating in retail sales of watches, jewellery, footwear, and clothing in specialised stores could offer niche market opportunities if managed effectively.

4. Due Diligence Notes:

• Financial Performance Details: Obtain full profit and loss account and cash flow statements to assess operational profitability and cash generation, as only balance sheet data is available.
• Director’s Loan Terms: Clarify the nature, terms, and repayment schedule of the director’s loan to understand creditor risk and funding stability.
• Business Plan and Funding: Review business plan and funding arrangements to assess sustainability and capacity to address current negative net asset position.
• Customer Base and Suppliers: Investigate customer concentration risk, supplier terms, and stock turnover to evaluate operational stability.
• Management Changes: Note the resignation of one director within the first year; assess impact on governance and management continuity.