Company Number: 15161498

Analysis Date: 2025-07-20 18:56 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to significant negative net current assets and net liabilities shortly after incorporation, indicating solvency concerns. The current liabilities substantially exceed current assets, with a large director loan forming the majority of liabilities, raising liquidity and operational sustainability issues.

2. Key Concerns:

• Negative Net Current Assets: The company has net current liabilities of £12,087, reflecting inability to cover short-term obligations from current assets.
• Net Liabilities and Negative Shareholders’ Funds: Net liabilities stand at £11,819, with shareholders' funds equally negative, signaling insolvency on a balance sheet basis.
• Reliance on Director Loans: £12,693 of current liabilities are director loans, indicating dependence on related-party financing which may be withdrawn, increasing financial vulnerability.

3. Positive Indicators:

• Compliance and Timely Filing: Accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance.
• Clear Ownership and Control: The sole director and 75-100% shareholder is identified, simplifying governance and decision-making.
• Business Sector: Operating in retail clothing (SIC 47710), a potentially scalable market if operational issues are addressed.

4. Due Diligence Notes:

• Investigate the terms and maturity of the director loan to assess risk of repayment demand or restructuring.
• Review cash flow projections and business plan to understand strategies for improving liquidity and profitability.
• Assess the nature and collectability of debtors (£1,495), as well as any stock or inventory not disclosed that might impact working capital.
• Obtain details on revenue generation since incorporation and planned capital injections or external funding.
• Confirm any contingent liabilities or off-balance sheet commitments not reflected in current accounts.