Company Number: 13662372

Analysis Date: 2025-07-20 11:52 UTC

1. Risk Rating: HIGH
   Given that POCKETMERCH LTD is classified as a dormant company with minimal net assets (£100) consistently reported across the last four financial years, there is a high risk from an investment perspective. The company has no trading activity or financial substance to support operations or meet obligations.

2. Key Concerns:

• Dormant Status: The company has filed dormant accounts each year, indicating no business activity, revenue generation, or operational cash flow. This raises concerns about business viability and sustainability.
• Minimal Net Assets: Shareholders' funds stand at only £100, with no growth or retained earnings, suggesting no capital infusion or asset accumulation to buffer risks.
• Single Person Control: The sole director and 100% owner, Samuel James Crossley, holds full control and also acts as company secretary, which may raise governance and oversight questions.

3. Positive Indicators:

• Compliance: The company is up to date with its filings and not overdue on accounts or confirmation statements, indicating adherence to statutory requirements.
• Clear Ownership & Management: The identity of the controlling party is transparent, with no disqualifications or governance red flags evident from available data.

4. Due Diligence Notes:

• Investigate Business Plans: Since the company is dormant, clarify if there are intended operational activities planned or reasons for dormancy (e.g., holding company, intellectual property protection).
• Financial Backing: Assess whether the shareholder intends to inject capital or activate business operations, and evaluate sources of funding.
• Director Background: Review the director’s experience and any other directorships to gauge management capability and associated risks.