Company Number: 13118479

Analysis Date: 2025-07-20 13:20 UTC

1. Risk Rating: MEDIUM
   The company shows a decline in net assets and shareholder funds over the last reported year, which raises concerns about solvency. However, it maintains positive net current assets and has no overdue filings, which mitigates immediate liquidity or compliance risks.

2. Key Concerns:

• Declining Net Assets: Net assets dropped from £77,484 in 2024 to £29,679 in 2025, indicating a significant erosion of equity and potential solvency pressure.
• Reduced Current Assets and Cash: Current assets decreased from £280,901 to £215,098, and cash reserves declined slightly, which may impact liquidity and the ability to meet short-term obligations.
• Concentrated Control: Two individuals each own 25-50% shares and voting rights with appointment rights for directors, indicating high ownership concentration which may affect governance and minority investor protections.

3. Positive Indicators:

• Positive Net Current Assets: The company’s net current assets remain positive at £128,197, suggesting the company can cover its short-term liabilities.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating regulatory compliance and good governance discipline.
• Growing Employee Base: The average number of employees rose from 2 to 3, suggesting modest operational growth and business activity.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net assets and profit and loss reserves in the latest financial year to assess sustainability and underlying operational challenges.
• Review debtor aging and collectability given the high debtor balances (£138,937) to confirm cash flow reliability.
• Assess the impact of concentrated ownership on decision-making and potential related party transactions.
• Confirm contingent liabilities or off-balance sheet risks not apparent from the filed accounts.
• Evaluate the company’s business model sustainability in the retail internet sales sector, considering market competition and growth prospects.