Company Number: 15236328

Analysis Date: 2025-07-29 12:19 UTC

1. Risk Rating: LOW
   The company appears financially stable with positive net current assets, no overdue filings, and no signs of insolvency or distress. The financials indicate sound working capital and equity position for a newly incorporated retail business.

2. Key Concerns:

• Limited financial history: Incorporated only in October 2023, so financial data covers less than two years, limiting trend analysis and long-term risk assessment.
• Directors’ loans balance: Combined £11,500 outstanding advances from directors could pose liquidity risk if repayment terms are unclear or if the company relies heavily on director funding.
• Small asset base: Fixed assets of £6,150 and net assets of £37,098 suggest limited capitalization which may constrain growth or buffer against adverse conditions.

3. Positive Indicators:

• Solid liquidity: Current assets (£109,651) exceed current liabilities (£78,703) with net current assets of £30,948, indicating ability to meet short-term obligations.
• Positive retained earnings: Profit and loss reserves of £37,098 reflect profitable operations in the initial period.
• Compliance: Accounts and confirmation statement filings are up to date, no overdue returns, demonstrating adherence to regulatory requirements.
• Clear ownership and governance: Two directors with significant control identified, both resident in the UK, with no negative director conduct records indicated.

4. Due Diligence Notes:

• Review directors’ loan agreements to confirm repayment terms and any impact on company liquidity or solvency.
• Obtain more detailed trading performance and cash flow statements to assess operational sustainability beyond balance sheet snapshot.
• Verify the underlying business model viability in the retail sector given limited asset base and staffing costs.
• Confirm insurance, licensing, and other regulatory compliance relevant to retail operations.
• Monitor future filings for consistency in financial performance and any emerging risks.