SHOPYCART LTD

Executive Summary

Shopycart Ltd shows high insolvency risk with sustained negative net assets and no liquid current assets to cover liabilities. While it remains compliant with filings and operates at a micro scale, its financial position and recent management changes raise concerns about operational stability and the company’s ability to meet obligations. Further investigation into liquidity and strategic plans is recommended before considering investment.

SHOPYCART LTD - Analysis Report

Company Number: 14094235

Analysis Date: 2025-07-20 15:47 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, evidenced by persistent net liabilities and negative shareholders' funds. Current assets are zero or negative, while liabilities have increased, indicating poor liquidity and financial stress.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities worsened from £2,441 in 2023 to £3,047 in 2024, showing ongoing financial deterioration.
• Zero or Negative Current Assets: With current assets at £0 in 2024 and negative the prior year, there is no visible liquid resource to meet short-term obligations (current liabilities at £3,048).
• Change in Control and Director: The primary shareholder and director changed in May 2025, which may suggest operational or strategic instability requiring further investigation.

3. Positive Indicators:

• Account Filing Compliance: The company is up to date with both accounts and confirmation statement filings, reducing regulatory compliance risk.
• Micro Entity Status: Being a micro entity implies simplified reporting and potentially lower operational complexity.
• Small Workforce: The company maintains only one employee, which may indicate low fixed costs and operational flexibility.

4. Due Diligence Notes:

• Investigate the reason for the negative and declining net assets and whether there is a viable plan to restore solvency.
• Assess cash flow statements or bank statements (if available) to understand liquidity dynamics beyond the balance sheet snapshot.
• Clarify the impact and rationale behind the director and significant shareholder change in May 2025.
• Review contracts, commitments, or contingent liabilities that may not be reflected fully in the micro-entity accounts.
• Confirm the business model and revenue generation capability given the SIC code and lack of reported turnover or profit and loss data.