SHIMMI DRESSES LTD

Executive Summary

Shimmi Dresses Ltd, a micro-entity retail clothing company, shows a strengthening financial position with positive net assets and working capital, and no regulatory compliance issues. However, the high level of current liabilities relative to minimal share capital warrants further investigation into liquidity and operational cash flows. Overall, the company presents a low risk profile based on available data but requires additional financial details for comprehensive assessment.

SHIMMI DRESSES LTD - Analysis Report

Company Number: 12506809

Analysis Date: 2025-07-29 13:43 UTC

1. Risk Rating: LOW
   Shimmi Dresses Ltd demonstrates a solid net asset position relative to its micro-entity size, with positive working capital and no overdue filings. The company appears solvent and compliant with filing deadlines, mitigating immediate financial and regulatory risks.

2. Key Concerns:

• High Current Liabilities: Although net current assets are positive (£32,777), current liabilities (£106,043) are substantial relative to fixed assets and share capital, which could pressure liquidity if cash flow weakens.
• Limited Share Capital: The nominal share capital of £2.00 is minimal, indicating limited initial equity funding that might restrict financial flexibility in downturns.
• Small Scale and Limited Financial Disclosure: As a micro-entity, financial information is limited, reducing transparency on profitability and cash flow trends beyond balance sheet positions.

3. Positive Indicators:

• Improving Financial Position: Net assets increased significantly from £18,398 in 2023 to £35,153 in 2024, suggesting profitable operations or capital injections.
• Positive Working Capital: Net current assets of £32,777 indicate the company can cover short-term liabilities with current assets, supporting operational liquidity.
• Timely Filings and Compliance: No overdue accounts or confirmation statements, reflecting good governance and regulatory adherence.
• Stable Management: Both directors have been in place since incorporation with no indications of disqualification or governance issues.

4. Due Diligence Notes:

• Cash Flow Analysis: Investigate detailed cash flow statements or management accounts to confirm the ability to meet short-term obligations given sizeable current liabilities.
• Revenue and Profitability Trends: Obtain turnover and profit/loss data to assess the operational sustainability beyond balance sheet strength.
• Nature of Current Liabilities: Clarify the composition (trade creditors, loans, accruals) and terms of current liabilities to evaluate liquidity risk.
• Shareholder Structure: Confirm any capital contributions or shareholder loans not reflected in share capital that support net asset growth.
• Future Outlook and Business Model: Understand market position and sales pipeline in the retail clothing sector to gauge long-term viability.