Company Number: 13587300

Analysis Date: 2025-07-29 19:23 UTC

1. Risk Rating: HIGH
   The company exhibits sustained negative net assets and net current liabilities over multiple years, indicating solvency concerns. Despite being active and compliant with filings, its balance sheet position suggests financial distress risk.

2. Key Concerns:

• Persistent Net Current Liabilities: The company reported net current liabilities ranging from approximately £42k to £57k over the past three years, with no sign of improvement, indicating working capital deficits.
• Negative Shareholders’ Funds: Shareholders' funds remain negative, reflecting accumulated losses and a deficit in equity capital, which could limit the company's ability to sustain operations or raise additional funding.
• Elevated Taxation and Social Security Creditors: The 2024 accounts show a substantial increase in taxation and social security liabilities (£277k), which may indicate cash flow pressure or delayed payments to authorities.

3. Positive Indicators:

• Compliance and Timely Filings: The company is up to date with both accounts and confirmation statement filings, reducing regulatory compliance risk.
• Growth in Current Assets: Current assets increased from £489k in 2023 to approximately £596k in 2024, largely driven by stock, suggesting some inventory buildup possibly in anticipation of sales growth.
• Active Website and Contact Presence: An active website with multiple contact channels and social media presence indicates ongoing business operations and marketing efforts.

4. Due Diligence Notes:

• Investigate the reasons behind persistent negative net assets and working capital deficits, including profitability trends and cash flow management.
• Assess the nature and aging of stock and debtors to determine liquidity and realizability of current assets.
• Examine the composition of creditors, especially tax and social security liabilities, for potential payment arrears or disputes with HMRC.
• Review the director’s plans or strategies to restore financial health, including any capital injections or operational restructuring.
• Confirm the absence of director disqualifications or regulatory sanctions, given the significant control held by Mr. Erdinc Yusuf Kilboz.
• Understand the company’s business model dynamics under SIC codes 47910 and 46760 to assess market conditions and competition.