Company Number: 12752289

Analysis Date: 2025-07-19 12:55 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant and persistent negative net current assets and shareholders' funds over multiple years, indicating ongoing solvency concerns and an inability to meet short-term liabilities. The overdue accounts filing also raises compliance and governance flags.

2. Key Concerns:

• Persistent Negative Net Current Assets: The company’s net current liabilities are sizeable (£43,213 as of 2023) and have not improved materially over four years, raising serious liquidity risk.
• Overdue Annual Accounts Filing: The latest accounts due in April 2024 are overdue, which may indicate operational or administrative weaknesses and non-compliance with statutory requirements.
• Negative Shareholders' Funds: Shareholders’ deficit of nearly £30,000 suggests accumulated losses and potential erosion of capital, undermining financial stability and raising questions about ongoing viability.

3. Positive Indicators:

• Active Trading Status: The company remains active with an operational website and a clear business focus on reducing plastic waste, which aligns with growing environmental market trends.
• Single Director with Full Control: Clear governance structure with one director holding 75-100% shareholding and voting rights may streamline decision-making.
• Micro Entity Classification: Minimal reporting requirements reduce administrative burden and costs, appropriate for the company’s size.

4. Due Diligence Notes:

• Investigate Cash Flow Dynamics: Obtain detailed cash flow statements to assess the company’s ability to meet current liabilities despite negative working capital.
• Review Overdue Filings: Confirm reasons for overdue accounts and assess whether this signals deeper governance or operational issues.
• Assess Business Model Sustainability: Evaluate revenue streams, market positioning, and plans to return to profitability given persistent losses and negative equity.
• Confirm Director’s Financial Support: Determine if the director or related parties provide financial backing or guarantees to sustain operations.