Company Number: 14720404

Analysis Date: 2025-07-20 17:59 UTC

1. Risk Rating: HIGH
Pineapple Skies Ltd exhibits significant solvency risk with net current liabilities of £6,035 as of the latest financial year end. The company’s shareholders’ funds are negative, indicating that liabilities exceed assets. As a recently incorporated micro-entity with minimal assets and a single director/owner, the company’s financial position is fragile.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£9,125) substantially exceed its current assets (£3,090), leading to working capital deficiency. This raises concerns about the company’s ability to meet short-term obligations.
• Negative Shareholders’ Funds: Total equity is negative £6,035, indicating an insolvency position on the balance sheet, which is a material risk for creditors and investors.
• Lack of Financial History and Scale: Incorporated in March 2023, the company has only one year of trading and operates as a micro-entity with one employee, limiting visibility into operational sustainability and cash flow generation.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is current with its statutory accounts and confirmation statement filings, indicating regulatory compliance and good governance practices to date.
• Clear Ownership and Control: Single shareholder and director with 75-100% ownership, providing clear accountability and potentially streamlined decision-making.
• Niche Industry Focus: Classified under management consultancy activities (SIC 70229), which may require low capital expenditure and fixed assets, potentially allowing flexibility in operations and costs.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess liquidity pressures and any overdue debts.
• Review cash flow forecasts and any financial support from the sole shareholder to understand ongoing funding plans.
• Evaluate the business model’s revenue generation and client base to assess prospects for improving financial stability.
• Confirm absence of related party transactions or contingent liabilities not disclosed in the accounts.
• Monitor director’s conduct and any changes in company status or filing compliance in forthcoming periods.