Company Number: 14681321

Analysis Date: 2025-07-29 12:26 UTC

1. Risk Rating: HIGH
   Justification: The company shows minimal net assets (£1) despite positive turnover and reported profits, which raises significant concerns about the accuracy or completeness of financial reporting. The balance sheet figures appear inconsistent with profit and loss data, and total assets less current liabilities remain at a nominal value, indicating possible undercapitalization or accounting issues.

2. Key Concerns:

• Balance Sheet Anomaly: The net assets and total assets less current liabilities reported at only £1 for two consecutive years are incongruent with reported profits and turnover, suggesting potential misstatements or incomplete asset recognition.
• Low Capitalization: The called-up share capital is minimal (£1), which could limit the company’s ability to absorb losses or fund growth, posing solvency risks.
• Limited Financial Transparency: The accounts are unaudited micro-entity filings with minimal disclosures, restricting insight into cash flows, liabilities, or contingencies, which increases uncertainty regarding liquidity and operational sustainability.

3. Positive Indicators:

• Increasing Turnover and Profit: The company reported a turnover increase from approximately £49.5k to £60.8k and a profit increase from £13.2k to £24.6k year-over-year, indicating improving trading performance.
• No Filing Delinquencies: All statutory filings including accounts and confirmation statements are up to date with no overdue notices, demonstrating regulatory compliance.
• Stable Management and Control: Single director and 100% owner, Fatima Pirinska, appears consistent with no reported disqualifications or governance issues.

4. Due Diligence Notes:

• Verify the reasons behind the anomalous balance sheet figures, particularly the extremely low net assets despite profits. Investigate whether there are off-balance sheet liabilities or accounting policies impacting asset recognition.
• Request cash flow statements and detailed creditor/debtor aging schedules to assess liquidity and working capital management.
• Confirm whether the company has any contingent liabilities or related party transactions not reflected in these micro-entity accounts.
• Review the director’s background for operational capacity given sole control and the small size of the company.
• Consider obtaining bank references or credit reports to evaluate external financial credibility.