SUNIC LIMITED

Executive Summary

Sunic Limited is a small, micro-entity retailer of specialized garden and pet products with a modest but improving financial position. While the company demonstrates operational stability and regulatory compliance, its negative working capital and limited equity base warrant caution. Further review of liquidity and cash flow dynamics is recommended to fully assess solvency risk.

SUNIC LIMITED - Analysis Report

Company Number: 13713336

Analysis Date: 2025-07-29 13:56 UTC

1. Risk Rating: MEDIUM
   The company shows improvement in net assets over the latest financial year but continues to operate with negative net current assets, indicating liquidity pressure. The micro-entity status limits the amount of available financial data, constraining a full risk assessment. However, no overdue filings or governance issues are noted.

2. Key Concerns:

• Negative Working Capital: The company’s net current assets remain negative at £(4,274) as of 31 March 2024, though improved from the prior year’s £(14,757), which suggests potential difficulties meeting short-term liabilities with current assets.
• Modest Net Asset Base: Net assets increased to £9,188 from £100 a year earlier, an improvement but still modest, implying limited equity buffer against operational or financial shocks.
• Limited Scale and Data Transparency: As a micro-entity with only 2 employees, the business scale is small, and absence of audit reduces financial statement scrutiny, increasing reliance on management disclosures.

3. Positive Indicators:

• Improved Financial Position: The substantial improvement in net assets from £100 to £9,188 and reduction in net current liabilities signals management’s efforts to strengthen the balance sheet.
• Timely Compliance: The company is up to date with its accounts and confirmation statement filings, indicating good regulatory compliance and governance discipline.
• Stable Ownership and Management: Directors and secretary have been consistent since incorporation, suggesting operational stability and clear governance lines.

4. Due Diligence Notes:

• Verify the nature and timing of current liabilities to assess liquidity risk and confirm if any short-term debts are overdue or subject to covenant pressure.
• Review cash flow statements (if available) to understand operational cash generation and ability to cover working capital deficits.
• Investigate the business model sustainability given the small scale and whether growth or external financing plans exist.
• Confirm no contingent liabilities or off-balance sheet exposures that could affect solvency.
• Consider reviewing director backgrounds for any relevant risk factors (none disclosed here).