Company Number: 14818361

Analysis Date: 2025-07-19 12:22 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net liabilities of £2,241 against minimal current assets (£824) and current liabilities of £3,065. This negative net asset position shortly after incorporation indicates immediate financial strain.

2. Key Concerns:

• Negative net assets: The company’s balance sheet shows net liabilities, which raises questions about its ability to meet obligations.
• Liquidity shortfall: Current liabilities exceed current assets by a substantial margin, implying potential cash flow challenges.
• Early stage financial instability: Incorporated less than one year ago with only one employee and no audit exemption usage suggests limited operating history and uncertain sustainability.

3. Positive Indicators:

• Up-to-date filings: Accounts and confirmation statement are filed on time, indicating compliance with statutory requirements.
• Clear ownership structure: Three persons with significant control identified, each holding 25-50%, implying shared responsibility and transparent governance.
• Micro-entity reporting: Use of micro-entity provisions simplifies compliance burden for a small startup.

4. Due Diligence Notes:

• Investigate the nature and timing of the current liabilities to understand if they are short-term trade payables, loans, or other obligations.
• Review cash flow forecasts and any planned capital injections or shareholder loans to address the negative net asset position.
• Assess the business model viability and revenue generation potential given the retail clothing sector and early stage of operation.
• Confirm that no director disqualifications or regulatory compliance issues exist beyond available records.