Company Number: 14458947

Analysis Date: 2025-07-20 19:16 UTC

1. Risk Rating: MEDIUM
   The company appears solvent on a balance sheet basis with net current assets of £134k and shareholders’ funds of £284k. However, the financial data is limited due to the company’s recent incorporation and exemption from audit. The significant debtor balance is owed by a related party, which may introduce counterparty risk.

2. Key Concerns:

• Related Party Exposure: £285,000 of debtors are amounts owed by a group undertaking, Bloomers Holdings Ltd, creating concentration and credit risk if that entity encounters financial difficulties.
• Limited Operating History: Incorporated in November 2022, the company has less than two full years of trading history, restricting trend analysis or assessment of operational performance and cash flow stability.
• No Income Statement or Audit: The company filed under the small companies regime exemption, so no profit and loss information is available and accounts are unaudited, limiting transparency on profitability and financial controls.

3. Positive Indicators:

• Solid Net Asset Position: Shareholders’ funds of £284k and positive net current assets indicate the company currently has a positive equity buffer.
• Up to Date Filings: Accounts and confirmation statement are filed on time with no overdue returns, suggesting compliance with statutory obligations.
• Single Director and PSC Alignment: The sole director and person with significant control is the same individual, which may simplify governance and decision-making processes.

4. Due Diligence Notes:

• Verify the financial position and creditworthiness of Bloomers Holdings Ltd to assess the recoverability of the related party debtor balance.
• Obtain management accounts or cash flow forecasts to evaluate ongoing liquidity and operational performance given the absence of an income statement.
• Confirm if there are any contingent liabilities or commitments not reflected in the balance sheet.
• Understand the nature of the holding activities and the group structure to assess operational sustainability and risk exposure.
• Review any subsequent events after 31 March 2024 for changes in financial position or related party transactions.