Company Number: 13643577

Analysis Date: 2025-07-29 16:39 UTC

1. Risk Rating: HIGH
   The company exhibits a precarious financial position characterized by minimal net assets (£1), net current liabilities, and significant intercompany balances with related parties, indicating potential solvency and liquidity risks.

2. Key Concerns:

• Negative Working Capital: Net current liabilities of £89 suggest the company’s current liabilities slightly exceed current assets, which is a liquidity red flag.
• Heavy Reliance on Related Parties: Large balances owed to and from group undertakings (circa £187k each) imply dependency on intra-group financing rather than independent cash flow generation.
• Minimal Equity Base: Shareholders’ funds stand at a nominal £1, offering no cushion against operational or financial shocks.

3. Positive Indicators:

• Compliance with Filing: The company is active and up to date with both accounts and confirmation statement filings, indicating adherence to regulatory obligations.
• No Auditor Requirement: As a small company, it benefits from exemption from audit, which reduces compliance costs and suggests scale appropriate to its category.
• Stable Directorship and Control: Single director with full control may facilitate swift decision-making and consistency in governance.

4. Due Diligence Notes:

• Investigate the nature and terms of intercompany balances to assess the risk of non-recovery or calls for repayment that may impact liquidity.
• Assess the subsidiary’s financial health (Billion Dollar Smile Cosmetics Ltd) and the parent company Gelert Consulting Limited to understand group solvency and support capacity.
• Review cash flow projections and any external financing arrangements to evaluate ongoing operational sustainability beyond related party funding.
• Confirm there are no undisclosed contingent liabilities or regulatory issues that could affect financial stability.