Company Number: 14518097

Analysis Date: 2025-07-29 19:48 UTC

1. Risk Rating: HIGH
   Justification: The company shows a net current liability position (£-1,037) with current liabilities exceeding current assets by a significant margin relative to the scale of the business. Negative net assets indicate insolvency on a balance sheet basis, raising serious concerns about its ability to meet obligations.

2. Key Concerns:

• Negative net current assets (liabilities) of £1,037 despite small scale, indicating liquidity risk and potential inability to pay short-term creditors.
• Negative shareholders’ funds and net assets suggest the company is insolvent at the balance sheet date, posing solvency risk.
• The company is very new (incorporated December 2022) with only one employee and minimal financial history, limiting evidence of operational stability or sustainable revenue streams.

3. Positive Indicators:

• The company is compliant with filing deadlines for accounts and confirmation statements, indicating sound regulatory compliance to date.
• Ownership and control are concentrated with a single director and shareholder, which may facilitate swift decision-making.
• The business is classified under retail sale via mail order or internet (SIC 47910), a sector with potential for growth and scalability.

4. Due Diligence Notes:

• Investigate detailed cash flow statements or bank statements to assess actual liquidity and cash burn rate.
• Review business plan and revenue generation strategy, including customer acquisition and sales volume since incorporation.
• Confirm any contingent liabilities or off-balance-sheet obligations not reflected in the micro-entity accounts.
• Assess director’s plans for recapitalization or funding to address negative net assets.
• Clarify the relationship between the current liabilities and suppliers/creditors to understand payment terms and risk of enforcement actions.