PAGODA APPAREL LTD

Executive Summary

Pagoda Apparel Ltd is a small, active retail clothing company with a stable net asset position and no immediate solvency concerns. The company maintains compliance with filing obligations and demonstrates modest operational scale. However, limited financial disclosures typical of micro-entities necessitate further review of operational profitability and liquidity quality to fully assess ongoing business sustainability.

PAGODA APPAREL LTD - Analysis Report

Company Number: 13151375

Analysis Date: 2025-07-20 18:24 UTC

1. Risk Rating: LOW
   The company exhibits a solid net asset position relative to its size and no current liabilities, indicating a low immediate solvency risk. The micro-entity classification and compliance with filing deadlines also reduce regulatory concerns.

2. Key Concerns:

• Limited financial detail: The micro-entity accounts provide minimal insight into profitability, cash flow, or debt structure beyond net assets.
• Small scale and early stage: Incorporated in 2021, the company is still young with limited operational history, which may carry typical startup risks.
• Share capital nominal: Only £2 share capital suggests limited equity buffer, though net assets have increased, likely due to retained earnings or capital injections.

3. Positive Indicators:

• Positive net current assets (£10,435 as of Jan 2024) with no current liabilities, indicating good short-term liquidity.
• Consistent employee base of 2 suggests operational stability without rapid scaling risks.
• Up-to-date statutory filings (accounts and confirmation statements) with no overdue filings or penalties.
• Directors appear engaged and have maintained compliance; one director has significant control but no adverse records are noted.

4. Due Diligence Notes:

• Review detailed profit and loss data and cash flow statements if available to evaluate operational profitability and cash generation capacity.
• Confirm the nature of current assets (cash, receivables, inventory) to assess liquidity quality.
• Investigate the business model and revenue streams given the retail SIC code to understand sustainability and competitive positioning.
• Assess any related party transactions or director loans that might affect financial stability.
• Verify no hidden liabilities or contingent risks beyond the micro-entity filing scope.