Company Number: 13473181

Analysis Date: 2025-07-20 11:03 UTC

1. Credit Opinion: DECLINE. The company exhibits a persistent negative net asset position (£-10,249 as of June 2024) and a continuing working capital deficiency in prior years, though it improved slightly this year. The current liabilities significantly exceed current assets, and long-term liabilities remain high (£11,109). Despite a small operating profit in the latest period, the overall financial position shows weak capitalization and limited buffer to absorb shocks. The sole director is a young individual (a student born 2005) which raises concerns about management experience and financial stewardship. The business operates in a competitive retail sector (mail order/internet sales) with low tangible asset backing and no employees, increasing operational risk.

2. Financial Strength: The balance sheet is weak. The company has nominal fixed assets (£620 intangible assets) and no tangible assets. Current assets (£561) are minimal and only cover a fraction of short-term liabilities (£11,109 due after one year, plus £321 due within one year). Net current assets improved to £240 in 2024 from negative in prior years, but this is insufficient to offset the large long-term creditors. Shareholders’ funds are negative and deteriorated from £-4,679 in 2021 to £-10,249 in 2024, indicating accumulated losses and ongoing erosion of equity.

3. Cash Flow Assessment: Cash on hand increased to £561 in 2024 from £104 in 2023, showing some improvement in liquidity. However, cash remains low relative to liabilities. No trade debtors or stock are reported, suggesting limited working capital tied in operations, but also limited revenue sources. The company reported a modest operating profit (£773) on low turnover (gross profit £3,068), indicating a fragile cash generation ability. Absence of employees suggests low fixed overheads but also limited operational scale. Overall, liquidity is minimal and not sufficient for absorbing financial strain or funding growth without external support.

4. Monitoring Points:

• Watch future profitability trends and gross margin improvements.
• Monitor cash flow and liquidity metrics closely, especially current ratio and cash conversion cycle.
• Track changes in creditor balances and any restructuring of long-term liabilities.
• Management changes or additions to strengthen financial oversight.
• Any increase in tangible assets or working capital to support operations.
• Timely filing of accounts and confirmation statements to avoid compliance risks.