SILVA SALES LIMITED

Executive Summary

SILVA SALES LIMITED, a recently incorporated micro-entity, currently exhibits a high solvency risk due to negative net assets and a working capital deficit. While the company is compliant with filing requirements and controlled by a single director, its limited operational history and liquidity challenges present significant investment concerns. Further investigation into liabilities and cash flow plans is essential before considering investment.

SILVA SALES LIMITED - Analysis Report

Company Number: 14717495

Analysis Date: 2025-07-20 12:42 UTC

1. Risk Rating: HIGH
   The company’s financials show significant negative net current assets (-£7,245) and negative net assets, indicating insolvency at the balance sheet date. This raises concerns about its ability to meet short-term liabilities and ongoing obligations.

2. Key Concerns:

• Solvency risk: The balance sheet reflects liabilities exceeding current assets by £7,245, indicating the company is technically insolvent.
• Liquidity issues: With current liabilities at £8,370 and only £1,125 in current assets, the company likely faces cash flow constraints, which may impede operational continuity.
• Operational stability: Incorporated in 2023 and with only one employee, the company is at an early stage with no indication of revenue or profitability, increasing risk due to limited operational history.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, demonstrating adherence to statutory requirements since incorporation.
• Clear ownership and control: Single director and 75-100% ownership by Ms. Aida Silva Neviani, which simplifies governance and decision-making.
• Industry classification: Engaged in retail sale via mail order/Internet and wholesale, sectors with potential for scalable growth.

4. Due Diligence Notes:

• Verify the nature of current liabilities and whether they are trade payables, director loans, or other debts.
• Investigate cash flow projections and business plan to assess how the company intends to resolve the negative working capital position.
• Review any related party transactions or guarantees given by the sole director.
• Assess sales and revenue generation since incorporation to determine operational viability.