Company Number: 13454159

Analysis Date: 2025-07-20 18:16 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity challenges as evidenced by persistent and increasing net current liabilities and negative net assets over the last three years. The absence of employees and reliance on a single director/shareholder intensify operational risk.

2. Key Concerns:

• Solvency Risk: Net liabilities of £1,472 as of June 2024, slightly improved from prior years but still substantial relative to the company size, indicating ongoing difficulties meeting long-term obligations.
• Liquidity Concerns: Current liabilities (£1,936) far exceed current assets (£80), resulting in a net current liability of £1,856, highlighting a critical short-term cash flow deficit.
• Operational Stability: No employees reported and a sole director/shareholder structure could limit business continuity and scalability. The company has been loss-making since inception, with a cumulative deficit in retained earnings.

3. Positive Indicators:

• The company is classified as a small private limited company and remains compliant with filing deadlines for accounts and confirmation statements, indicating regulatory compliance.
• The principal activity (retail sale via mail order or internet) is a viable and scalable business model if adequately capitalized and managed.
• The director is actively involved and controls 75-100% of shares and voting rights, providing clear decision-making authority.

4. Due Diligence Notes:

• Investigate the reasons behind persistent negative net assets and large current liabilities, including creditor terms and any overdue payables.
• Assess the company’s cash flow projections and plans for capital injection or debt restructuring to remedy liquidity shortfalls.
• Confirm the business model’s viability and whether there are strategic plans to increase revenues or reduce costs, including the possibility of hiring employees or outsourcing operations.
• Review any contingent liabilities or off-balance sheet obligations not evident from the filings.
• Evaluate the background and financial standing of the sole director/shareholder as a key risk factor.