Company Number: 13155492

Analysis Date: 2025-07-20 19:15 UTC

1. Risk Rating: HIGH
   The company exhibits significant negative net assets and net current liabilities over multiple years, indicating solvency issues and potential financial distress.

2. Key Concerns:

• Persistent Negative Net Assets: The company’s net assets have deteriorated from approximately -£15,047 in 2021 to -£15,883 in 2024, suggesting ongoing losses and erosion of shareholder equity.
• Liquidity Deficit: Net current assets are negative by over £18,000 as of 2024, with current liabilities exceeding current assets substantially, indicating difficulty meeting short-term obligations.
• Director’s Loan Account Exposure: A large portion (£27,847 in 2024) of current liabilities is due to the director’s loan account, which may reflect informal or unsecured financing methods, increasing risk if the director withdraws support.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with both accounts and confirmation statement filings, indicating good regulatory compliance and governance discipline.
• Single Shareholder Control: The sole shareholder/director, Mrs. Lottie Rachel Seaborn, holds full control, which may simplify decision-making and allow for swift operational adjustments if needed.
• Small Scale Operation: Operating as a small private company with exemption from audit reduces administrative burden and costs, potentially aiding survival in early years.

4. Due Diligence Notes:

• Investigate Nature and Terms of Director’s Loan: Ascertain whether this funding is repayable on demand and the likelihood of continued support by the director.
• Review Detailed Profit and Loss Accounts: These are not provided here; understanding revenue, gross margins, expense trends, and cash flow generation is critical for assessing operational stability.
• Assess Business Model Viability: Given the SIC codes relating to retail and manufacturing of niche products, evaluate market demand, competitive positioning, and business plan robustness.
• Confirm Absence of Director Disqualifications or Legal Issues: Verify that the director has no adverse records affecting governance or reputational risk.