Company Number: 13474760

Analysis Date: 2025-07-29 12:24 UTC

1. Risk Rating: HIGH
   The company shows significant liquidity and solvency concerns, with current liabilities exceeding current assets by a large margin as of the latest accounts. Net current liabilities have worsened substantially from prior years, indicating increasing short-term financial distress. The overall net assets remain very low for a business operating for three years.

2. Key Concerns:

• Liquidity Deficit: Current assets of only £40 against current liabilities of £9,765 at 2024 year-end create a severe working capital shortfall, risking inability to meet short-term obligations.
• Rising Long-term Creditors: Creditors due after one year remain high at £4,892, indicating ongoing liabilities that may pressure future cash flows.
• Declining Net Assets and Equity: Net assets have fallen from £5,397 at incorporation to £2,183, suggesting accumulated losses or erosion of capital base.

3. Positive Indicators:

• No Overdue Filings: The company is compliant on accounts and confirmation statements, reducing regulatory risk.
• Single Controlling Director: Clear ownership and control by Mr. Elias Teasdale may facilitate decisive management actions.
• Modest Asset Base: Fixed assets are stable (~£17k), minimizing risk of asset write-downs impacting solvency further.

4. Due Diligence Notes:

• Investigate the nature and terms of current and long-term creditors to understand repayment schedules and any covenant risks.
• Review detailed profit and loss accounts (not provided) to assess operational performance, cash flow generation, and reasons for declining net assets.
• Assess the business model viability given the industry (beauty and cosmetics retail) and the very low current asset base.
• Confirm whether the company has access to additional funding or support from the controlling shareholder or other sources.
• Validate management strategy to address liquidity issues and return to positive working capital.