Company Number: 13060577

Analysis Date: 2025-07-19 12:46 UTC

1. Risk Rating: HIGH
   The company exhibits sustained negative net assets and net current liabilities over multiple years, indicating serious solvency and liquidity challenges. The micro-entity status limits available financial disclosure, but the consistent deficit and working capital shortfall warrant a high-risk classification.

2. Key Concerns:

• Persistent negative shareholders’ funds: The company’s net liabilities have increased from -£56 in 2020 to -£22,299 in 2023, demonstrating ongoing erosion of equity and potential insolvency risk.
• Negative net current assets: Current liabilities exceed current assets by over £22,000 as of 2023, indicating insufficient short-term liquidity to meet obligations as they fall due.
• Small share capital and limited financial buffer: With only £100 in share capital, the company has minimal equity cushion to absorb losses or secure financing.

3. Positive Indicators:

• Compliance with filing deadlines: No overdue accounts or confirmation statements reported, indicating sound regulatory compliance and governance discipline.
• Stable directorship: Directors appear active and stable, with no public disqualifications or governance red flags evident from provided data.
• Gradual increase in average employees: The workforce has increased from 7 to 9 employees over two years, suggesting some operational continuity and potential business activity growth.

4. Due Diligence Notes:

• Investigate the company’s business model and revenue streams in postal and retail sectors to assess operational sustainability amid financial deficits.
• Review management accounts and cash flow statements not publicly filed, to evaluate short-term liquidity and working capital management.
• Confirm whether directors or shareholders have provided financial support or guarantees to maintain solvency.
• Assess any contingent liabilities or off-balance sheet obligations that could exacerbate financial risk.
• Understand the impact of the company’s micro-entity accounting framework on the visibility of financial risks.