Company Number: 14632591

Analysis Date: 2025-07-20 15:30 UTC

1. Risk Rating: HIGH
   This rating is primarily due to the company’s negative net assets and net current liabilities position within its first year of operation, indicating potential solvency and liquidity issues.

2. Key Concerns:

• Negative Net Assets and Net Current Assets: The company shows net liabilities of £4,536 and net current liabilities of £18,803 as at 29 February 2024, reflecting that current liabilities exceed current assets.
• High Directors’ Loan Liability: The entirety of current liabilities (£43,103) comprises directors’ loan accounts, suggesting dependence on director funding rather than external financing or operational cash flow.
• Early Stage Financial Position: Incorporated in February 2023, the company has limited operating history, with reported losses or negative retained earnings (profit and loss account at -£4,636), which raises concerns about business sustainability and ability to generate profits going forward.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement filings are up to date, indicating good compliance with regulatory requirements.
• Tangible Fixed Assets Investment: The company has invested £14,267 in tangible assets (plant, machinery, vehicles, etc.) which may support operational capability.
• Active Website and Market Presence: The company maintains an active website with product offerings and contact details, suggesting operational business activity in the retail tile sector (SIC 47520).

4. Due Diligence Notes:

• Review Directors’ Loan Agreements: Investigate terms and sustainability of directors’ loans, including repayment plans and whether these loans could be called in, posing liquidity risks.
• Assess Business Model and Revenue Generation: Examine turnover and cash flow patterns since incorporation to evaluate if operational revenues can support liabilities and future growth.
• Examine Management and Governance: Given the director loans and early losses, review governance practices and director backgrounds for any potential conflicts or risks. Also confirm no director disqualifications or adverse conduct records exist.
• Monitor Future Financial Performance: The company’s ability to improve its net asset position and generate positive working capital is critical; future accounts should be reviewed promptly.