Company Number: 13547980

Analysis Date: 2025-07-29 19:12 UTC

1. Risk Rating: MEDIUM

Justification: Natural Glow Limited shows a significant decline in net current assets and shareholders’ funds from £20,499 in 2023 to only £400 in 2024, indicating a sharp deterioration in its financial position. The company remains active with no overdue filings, but the very low net current assets and cash balance relative to current liabilities suggest potential liquidity pressure. However, there is no indication of insolvency or legal distress at this stage.

2. Key Concerns:

• Liquidity risk: Cash at bank has fallen substantially from £20,816 in 2023 to £2,007 in 2024, while current liabilities have increased, leaving minimal net current assets (£400).
• Declining financial resilience: Shareholders’ funds reduced drastically, reflecting accumulated losses or increased liabilities, raising concerns about operational sustainability.
• Limited financial disclosure: As a small company filing under exemption, the absence of an income statement and limited audit review reduces transparency into profitability and cash flow drivers.

3. Positive Indicators:

• Compliance: The company is up to date with statutory accounts and confirmation statement filings, indicating sound governance and regulatory compliance.
• Established ownership and control: Two directors with equal significant control and clear accountability reduce governance ambiguity.
• Business classification: Operating in a retail mail order/internet sales sector, which can be scalable and adaptable if managed prudently.

4. Due Diligence Notes:

• Investigate the causes behind the sharp decline in cash and net current assets between 2023 and 2024, including review of the income statement and cash flow statement if available.
• Assess the nature and timing of current liabilities, particularly taxation and social security amounts, to understand payment obligations.
• Review management plans for restoring financial stability and profitability given the reduced equity base.
• Confirm whether there are any contingent liabilities, related party transactions, or off-balance sheet risks.
• Verify the sustainability of the business model and market position in the retail e-commerce space.