Company Number: 13134133

Analysis Date: 2025-07-29 20:02 UTC

1. Risk Rating: MEDIUM
   The company shows ongoing operation with timely filings and no overdue returns, which supports operational continuity. However, recurring net current liabilities and declining net assets indicate liquidity and solvency pressures that present moderate risk.

2. Key Concerns:

• Negative Working Capital: Net current liabilities have deteriorated from -£46,493 in 2023 to -£54,759 in 2024, indicating the company’s current liabilities exceed current assets, posing short-term liquidity challenges.
• Declining Net Assets: Net assets have reduced nearly by half from £17,449 in 2023 to £7,919 in 2024, which signals erosion of equity and potential solvency strain.
• Long-Term Creditors: The company carries significant creditors falling due after more than one year (£19,168 in 2024), which might pressure future cash flows especially given the current liquidity shortfall.

3. Positive Indicators:

• Timely Compliance: No overdue accounts or confirmation statements, showing good regulatory compliance and governance discipline.
• Low Employee Count: Only 2 employees suggest a lean operational structure which may help in managing overheads effectively.
• Established Supply Area and Online Presence: The company’s website indicates a focused supply chain sourcing within close proximity and an active online sales channel, which could support stable revenue streams.

4. Due Diligence Notes:

• Review detailed cash flow statements and creditor aging schedules to understand liquidity management and repayment capacity.
• Investigate the nature of current and long-term liabilities to assess potential refinancing or restructuring risks.
• Examine the company’s profitability trends since the P&L reserve is not publicly filed; profitability is critical to offsetting asset erosion.
• Evaluate any contingent liabilities or off-balance sheet exposures not reflected in micro-entity accounts.
• Confirm stability and background of key directors, noting that a director resigned in August 2024 and a new one appointed in April 2025, to assess management continuity.