Company Number: 13801075

Analysis Date: 2025-07-29 17:15 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets and net assets for the last two reported years, indicating liabilities exceed assets, which is a significant solvency concern for a micro-entity in retail.

2. Key Concerns:

• Solvency Risk: Negative net assets of £2,403 in 2023 (worsening from -£851 in 2022) suggest the company may struggle to meet liabilities as they fall due.
• Liquidity Concerns: Current liabilities (£33,783) exceed current assets (£31,380), highlighting potential cash flow stress.
• Operational Stability: The company has no employees, which could indicate limited operational capacity or reliance on the director alone; also no fixed assets to support ongoing operations.

3. Positive Indicators:

• The company is current with statutory filings (accounts and confirmation statements not overdue), indicating compliance with regulatory requirements.
• Sole shareholder/director control may allow for swift decision-making.
• A modest increase in current assets year over year (£28,442 to £31,380) shows some growth in liquid resources, albeit insufficient to cover liabilities.

4. Due Diligence Notes:

• Verify the nature of current liabilities, their maturity profile, and whether any are overdue or subject to enforcement action.
• Investigate the business model and revenue streams given no employees and no fixed assets; assess sustainability and plans for growth or restructuring.
• Confirm whether the director’s status as unemployed impacts the company's financial support or access to additional capital.
• Review any contingent liabilities or related-party transactions not disclosed in micro-entity accounts.
• Seek updated management commentary or forecasts that might explain the negative net asset position and plans to rectify it.