Company Number: 12609334

Analysis Date: 2025-07-29 14:26 UTC

1. Risk Rating: LOW
   The company demonstrates stable net current assets and shareholder funds over recent years, with current liabilities well covered by current assets. There are no overdue filings or indications of financial distress.

2. Key Concerns:

• Very low issued share capital (£2), which may limit financial buffer capacity.
• Director turnover in 2024 with a new director appointed recently, which could imply changes in management continuity.
• Small scale of operations as indicated by modest asset and liability figures, suggesting sensitivity to market fluctuations or operational disruptions.

3. Positive Indicators:

• Consistent positive net current assets (~£4,900-£5,000) and shareholder funds (~£5,500-£5,700) over the last two years indicating financial stability.
• No overdue accounts or confirmation statements, reflecting good regulatory compliance.
• Business operates in retail and wholesale sectors with a clear product focus (perfumes, clothing), supported by an active website and contact information.
• No indication of debt or borrowing, minimizing solvency risk.

4. Due Diligence Notes:

• Verify the impact of director change in April 2024 on company strategy and operations.
• Review cash flow trends beyond balance sheet snapshots to confirm liquidity resilience, especially given low cash balances (~£2,100).
• Investigate the reason for reduced debtors and creditors from 2023 to 2024 to understand changes in working capital management.
• Confirm the parent group mentioned in accounting policies and assess consolidated financial health if applicable.
• Assess market position and competitive risks given the niche industry classification and small scale.