S K RETAILERS LTD

Executive Summary

S K Retailers Ltd is a newly formed private retail company demonstrating basic compliance and positive net assets. However, limited operating history and low cash reserves suggest moderate risk, particularly regarding liquidity and sustainability. Further review of profitability and cash flow patterns is recommended to better gauge financial health.

S K RETAILERS LTD - Analysis Report

Company Number: 15199342

Analysis Date: 2025-07-29 20:59 UTC

1. Risk Rating: MEDIUM
   The company appears solvent with net current assets positive at £5,868 and no overdue filings, but given its very recent incorporation and limited trading history, there is moderate risk until operational stability is established.

2. Key Concerns:

• Short Trading History: Incorporated in October 2023 with only one financial period, limiting ability to assess performance trends or sustainability.
• Modest Cash Reserves: Cash balance is low (£2,087) relative to current liabilities (£21,303), indicating potential liquidity pressure if receivables or inventory cannot be converted quickly.
• Dividend Proposal: Proposed dividends of £5,000 against relatively small profits and net assets may strain cash flow or indicate aggressive distribution policy early in the company’s life.

3. Positive Indicators:

• Positive Net Current Assets: Working capital is positive at £5,868, suggesting current assets exceed short-term liabilities.
• No Filing Delays: Accounts and confirmation statements are timely, reflecting compliance with regulatory requirements.
• Single Owner-Director Control: Clear ownership and control by a single director/shareholder simplifies governance and decision-making.

4. Due Diligence Notes:

• Review profit and loss details (unfiled) to understand profitability and cash generation capability.
• Verify inventory valuation and turnover rates to assess liquidity of current assets.
• Investigate rationale and funding source for proposed dividends.
• Monitor subsequent trading periods for revenue growth, margin stability, and cash flow sufficiency.
• Confirm no contingent liabilities or off-balance sheet obligations exist.