SEVEN STAR WINDOWS LTD

Executive Summary

Seven Star Windows Ltd is a newly incorporated micro-entity showing early financial strain with negative net assets and working capital deficits. While the company complies with filing requirements and has a straightforward ownership structure, the short operating history, financial position, and director turnover present material risks. Further investigation into liquidity, governance, and business viability is recommended before considering investment.

SEVEN STAR WINDOWS LTD - Analysis Report

Company Number: 14876178

Analysis Date: 2025-07-20 17:48 UTC

1. Risk Rating: HIGH
   The company exhibits financial distress with net current liabilities and negative net assets shortly after incorporation, indicating solvency concerns.

2. Key Concerns:

• Negative Net Assets and Working Capital: As of 31 May 2024, net current liabilities are £2,698 and net assets are negative at £2,598, suggesting the company is technically insolvent.
• Limited Operating History and Scale: Incorporated in May 2023, with only one reported employee and micro-entity filing status, the company is at a very early stage with limited financial data and operational track record.
• Director Turnover and Control: Two directors resigned within the first year; the remaining director and majority shareholder holds significant control, which may pose governance risks if not balanced.

3. Positive Indicators:

• Timely Filing Compliance: No overdue filings for accounts or confirmation statements, indicating compliance with statutory obligations.
• Clear Ownership Structure: One individual holds 75-100% ownership and voting rights, providing clear decision-making authority.
• Micro-Entity Status: Reduced reporting complexity may reflect prudent cost management appropriate for the company’s early stage.

4. Due Diligence Notes:

• Investigate the nature and cause of the negative net assets and current liabilities to assess whether this reflects start-up losses, unpaid liabilities, or other financial pressures.
• Review cash flow projections and funding arrangements to evaluate liquidity and the ability to meet short-term obligations.
• Assess the reasons behind director resignations and the impact on governance and operational stability.
• Consider the business model and market potential given the SIC code “Other manufacturing not elsewhere classified” is broad and unspecified.