Company Number: 13889669

Analysis Date: 2025-07-20 18:36 UTC

1. Risk Rating: HIGH
   The company has transitioned from positive net assets (£10,783) in the prior two years to net liabilities of (£3,334) as of 29 February 2024. This indicates a deterioration in financial position, with current liabilities exceeding current assets, raising significant solvency concerns for a micro-entity with very limited resources.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£7,141) exceed current assets (£3,807), resulting in a net current liability position, which can impair the company’s ability to meet short-term obligations.
• Erosion of Shareholders’ Funds: Equity has moved from a positive £10,783 to negative £3,334 within one year, signalling accumulated losses or withdrawals that may threaten long-term viability.
• Single Director and Shareholder Control: The sole director and 75-100% shareholder is the same individual, which concentrates control and may limit oversight or independent governance.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s accounts and confirmation statement are filed on time with no overdue filings, indicating regulatory compliance.
• Established Operational Activity: The company has been active since 2022, with consistent SIC code classification as a dispensing chemist in specialised stores, suggesting a clear business focus.
• Minimal Employee Base: Operating with only one employee may keep operating costs low, which could be advantageous if revenue growth resumes.

4. Due Diligence Notes:

• Investigate the causes of the sharp decline in net assets and working capital during the latest financial year—whether due to trading losses, increased liabilities, or other factors.
• Review cash flow statements and management accounts (if available) for liquidity trends and short-term funding arrangements.
• Assess the director’s plans or capital injection commitments to address the negative equity and improve financial stability.
• Confirm no related party transactions or contingencies that could exacerbate financial risk.
• Consider market conditions and competitive positioning in the pharmaceutical retail sector to evaluate sustainability prospects.