Company Number: 14528435

Analysis Date: 2025-07-29 12:59 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net liabilities worsening from -£8,485 in 2023 to -£20,917 in 2024. Current liabilities far exceed current assets, indicating poor liquidity and an inability to meet short-term obligations. This financial position is a strong red flag for investor risk.

2. Key Concerns:

• Persistent and increasing net current liabilities indicate ongoing cash flow and solvency issues.
• Negative shareholders’ funds and net assets suggest the company is insolvent on a balance sheet basis.
• Micro-entity status and unaudited accounts limit financial transparency and reduce assurance on reported figures.

3. Positive Indicators:

• The company is active with no overdue filings, demonstrating compliance with statutory obligations to date.
• Sole director and 75-100% owner (Miss Judith Alarcon) provides clear control and accountability.
• The company’s business activity (retail sale via internet/mail order) is scalable and does not inherently require high fixed assets.

4. Due Diligence Notes:

• Investigate the nature and maturity of the current liabilities to assess immediate repayment risks and creditor relationships.
• Review cash flow statements or management accounts (if available) to understand liquidity management and funding plans.
• Clarify the business model viability and whether the losses are due to start-up phase expenses or structural issues.
• Confirm absence of director disqualifications or regulatory issues beyond Companies House filings.
• Assess funding sources or shareholder support mechanisms given the negative equity position.