Company Number: 13636812

Analysis Date: 2025-07-20 15:29 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by persistent negative net assets and large net current liabilities exceeding current assets by a substantial margin.

2. Key Concerns:

• Solvency and Negative Equity: The company’s shareholders’ funds are deeply negative (£-174,268 as of 2024), reflecting accumulated losses and a net liability position that worsened over recent years.
• Liquidity Shortfall: Current liabilities (£221,043) significantly exceed current assets (£18,032), with net current liabilities of £203,011, indicating potential difficulties meeting short-term obligations. Cash on hand is minimal (£1,078), raising concerns about immediate liquidity.
• Operational Sustainability: The company has been incurring continuous losses since inception, as indicated by the growing deficit in retained earnings (profit and loss account), with no sign of recovery or profitability in the latest accounts.

3. Positive Indicators:

• Compliance with Filing: All statutory filings including accounts and confirmation statements are up to date and not overdue, which reflects a level of regulatory compliance and governance discipline.
• Experienced Director and Control Transparency: Director and Persons with Significant Control (PSC) information is clear and consistent, indicating transparent ownership and management structure.
• Small Company Reporting Regime: The company benefits from simplified reporting requirements, which reduces administrative burden and costs.

4. Due Diligence Notes:

• Review Detailed Profit and Loss Account: The profit and loss account was not filed publicly; obtaining this is critical to assess operational performance trends and cash flow generation.
• Investigate Nature of Creditors: The large "other creditors" balance (£217,142) needs clarification to understand if these are trade payables, loans from directors/related parties, or other liabilities that may affect creditor priority or risk.
• Examine Cashflow and Funding Arrangements: Given low cash balances and high current liabilities, assess working capital management, any overdrafts or credit facilities, and plans to manage liquidity risks going forward.
• Assess Going Concern Assumptions: Given persistent losses and negative equity, confirmation from management and auditors (if any) on going concern status and any plans for recapitalization or turnaround is important.
• Understand Intangible Asset Amortization Impact: Goodwill amortization is ongoing and reducing asset base; verify if this reflects acquisitions or internal development and its implications for future profitability.

Executive Summary:
Olive’s Boutique Limited shows a high risk profile due to ongoing negative equity and significant liquidity shortfalls, which raise concerns about its ability to meet obligations and sustain operations. While compliance with filing requirements is maintained, the company’s financial health demands closer scrutiny, particularly regarding creditor composition, cash flow, and management’s plans to restore solvency. Additional financial detail and management disclosures are recommended to fully assess viability.