Company Number: 13060425

Analysis Date: 2025-07-20 12:25 UTC

1. Risk Rating: LOW The company demonstrates a solid net asset position and positive working capital with no overdue filings or liquidation status. The balance sheet shows net assets increasing year-on-year, and current assets comfortably exceed current liabilities, indicating good short-term liquidity.

2. Key Concerns:

• Limited Share Capital: The nominal share capital is only £100, which is common in small private companies but offers minimal equity buffer.
• High Stock Levels: Inventory remains constant at £100,000, a significant portion of current assets, which could pose liquidity risk if not quickly converted to sales.
• Concentrated Control: One person holds 75-100% of shares and voting rights, which may raise corporate governance concerns for institutional investors seeking diversified control.

3. Positive Indicators:

• Positive Net Current Assets: £70,565 at year-end 2024, up from £31,305 in 2023, indicating improved liquidity.
• Increasing Net Assets: Growth from £34,039 in 2023 to £75,450 in 2024 reflects retained earnings accumulation.
• On-Time Compliance: Both accounts and confirmation statement filings are up to date, demonstrating regulatory compliance.
• No Indication of Financial Distress: The company is active with no signs of insolvency or administration.

4. Due Diligence Notes:

• Verify the turnover and profitability trends to confirm operational sustainability, as detailed P&L data is not provided here.
• Assess inventory turnover rates and stock valuation methods to ensure stock is not overstated or obsolete.
• Review the company's cash flow statements to confirm cash generation ability beyond reported cash balances.
• Understand the business model and customer concentration given the SIC code (retail sale via mail order or internet).
• Investigate related party transactions or director loans given the concentrated ownership and control.
• Confirm absence of any director disqualifications or regulatory actions beyond publicly available data.