Company Number: 14374960

Analysis Date: 2025-07-20 18:37 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by negative net assets and liabilities exceeding current assets. Its very low turnover and operating losses further raise concerns about operational sustainability at this early stage.

2. Key Concerns:

• Negative shareholders’ funds (-£2,920) indicating insolvency on a balance sheet basis.
• Current liabilities of £3,527 greatly exceed current assets of £607, suggesting liquidity constraints.
• Minimal turnover (£879) against cost of materials and other charges totaling £3,799 points to ongoing operational losses and weak revenue generation.

3. Positive Indicators:

• Company is compliant with filing requirements, with no overdue accounts or confirmation statements, reflecting adequate regulatory compliance.
• No outstanding audit or off-balance sheet risks reported, and directors have formally approved accounts.
• Ownership and control are clearly defined between two directors/shareholders, which may facilitate decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the £3,527 creditors due after more than one year to understand long-term obligations and repayment capacity.
• Review cash flow forecasts and business plans to assess viability and paths to profitability.
• Confirm if any financial support arrangements exist between shareholders or third parties to sustain operations.
• Examine the background and track records of the directors for experience in managing early-stage retail businesses and their strategic plans.