Company Number: 13276098

Analysis Date: 2025-07-19 12:41 UTC

1. Risk Rating: HIGH
   The company shows deteriorating financial health with increasing net current liabilities, negative net assets, and shareholders’ funds. The most recent accounts indicate that current liabilities exceed current assets by £3,522, signaling potential solvency and liquidity issues.

2. Key Concerns:

• Solvency Risk: Negative net assets of £3,422 as of the latest financial year raise concerns about the company’s ability to meet long-term obligations.
• Liquidity Concerns: Working capital is significantly negative (£-3,522), implying cash flow difficulties to cover short-term liabilities.
• Operational Stability: The company has only one employee on average, minimal fixed assets, and declining financials over three years, which may reflect operational or market challenges.

3. Positive Indicators:

• Compliance: The company is up to date with its filings (accounts and confirmation statement), indicating good regulatory compliance.
• Ownership and Control: A stable management structure with two directors both residing at the registered address, and significant control held clearly by Ms Laura Taylor, which may support decision-making continuity.
• Exemption Utilisation: The company uses micro-entity reporting exemptions appropriately, possibly reducing administrative burden.

4. Due Diligence Notes:

• Investigate the reasons behind the worsening financial position over the last three years, including detailed review of cash flows and creditor terms.
• Clarify the nature of the company’s operations and revenue streams given the SIC codes mix (retail of second-hand goods, specialised retail, and motor vehicle maintenance) to assess market viability.
• Examine director backgrounds and related party transactions, especially given the occupations (locksmith and farmer) that may not align directly with the stated business activities.
• Confirm any off-balance sheet liabilities or contingent liabilities despite the accounts stating none.
• Review the business plan and forecasts to understand management’s strategy for returning to profitability or stabilising finances.