Company Number: 14767385

Analysis Date: 2025-07-20 15:40 UTC

1. Risk Rating: HIGH

Justification: The company has reported net current liabilities and negative net assets within its first financial year, indicative of a weak solvency position. The minimal current assets of £193 against current liabilities of £419 results in a working capital deficit of £226. This raises immediate concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets: The shareholders’ funds are negative (£-226), highlighting an insolvent balance sheet position at the reporting date.
• Very Limited Operating History: Incorporated in March 2023, the company has a short trading history with no employees reported, making it difficult to assess operational sustainability.
• Minimal Financial Resources: The micro entity status and very low asset base suggest limited financial buffer to absorb losses or fund growth.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is current with its accounts and confirmation statement filings, indicating adherence to regulatory obligations.
• Clear Ownership and Control: Two directors each hold significant share and voting interests, reducing risks related to dispersed ownership or control ambiguities.
• Business Activity: Classified under SIC 47910 (retail sale via mail order or internet), a sector with potential scalability if operational execution improves.

4. Due Diligence Notes:

• Investigate the nature and source of current liabilities to determine if they are trade creditors, loans, or other obligations.
• Review cash flow projections and funding plans to assess how the company intends to resolve its working capital deficit.
• Confirm if any related party transactions or director loans exist that are not disclosed in the accounts.
• Understand the business model and revenue generation strategy given the absence of employees and minimal financial activity.
• Monitor future filings for signs of improved financial health or further deterioration.