Company Number: 14459274

Analysis Date: 2025-07-29 12:09 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net current assets and increased working capital, indicating some short-term liquidity. However, the presence of significant long-term creditors (£31,249) and the resultant negative net assets (−£6,648) as of November 2024 elevate solvency risks. The company is relatively new with limited financial history, making long-term operational stability harder to assess.

2. Key Concerns:

• Solvency Pressure: Total net assets have turned negative in the latest year due to a sizeable creditor balance falling due after more than one year, suggesting potential solvency strain if obligations are not managed or refinanced.
• Growing Creditors: Current liabilities have more than doubled from £20,221 to £43,398 in one year, which may indicate increased reliance on short-term financing or delayed payments to suppliers.
• Limited Financial History & Scale: Being a micro-entity incorporated in late 2022 with only two employees limits insight into sustainable profitability and operational resilience.

3. Positive Indicators:

• Improved Liquidity: Net current assets increased from £7,656 in 2023 to £21,910 in 2024, demonstrating improved short-term liquidity and working capital management.
• Active Compliance: No overdue filings for accounts or confirmation statements, indicating good regulatory compliance and governance practices to date.
• Clear Ownership Structure: Two directors each hold significant control (25-50%), providing transparent governance and decision-making clarity.

4. Due Diligence Notes:

• Investigate the nature and terms of the £31,249 long-term creditors to assess repayment obligations and refinancing risk.
• Review cash flow statements (if available) to confirm operational cash generation and how liabilities are being serviced.
• Evaluate the business model sustainability given the micro-entity scale and competitive environment of internet retail for gaming accessories.
• Consider director backgrounds and any potential personal guarantees tied to company debt.
• Monitor future filings for changes in net assets or evidence of continued growth or financial stress.