Company Number: 14120170

Analysis Date: 2025-07-29 16:58 UTC

1. Risk Rating: LOW
   The Couture Cushion Ltd exhibits a stable financial position with positive net assets and shareholders’ funds, timely filings, and no indications of financial distress or regulatory non-compliance.

2. Key Concerns:

• Tight Working Capital: Net current assets are minimal at £57 as of May 2024, indicating limited short-term liquidity buffer to cover immediate liabilities.
• Micro-Entity Scale: Being a micro-entity with only one employee and limited fixed assets may constrain operational scalability and resilience against market fluctuations.
• Concentration of Control: Significant control by a single director and shareholder (50-75%) could pose governance risks if not balanced by oversight.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: Improvement from £16,626 in 2023 to £18,924 in 2024 demonstrates growth in company value.
• Timely Filing Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Active Online Presence: An active website with professional branding in a niche luxury handcrafted cushion market suggests operational engagement and marketing effort.

4. Due Diligence Notes:

• Review cash flow statements and detailed financial performance trends to confirm liquidity beyond balance sheet snapshot.
• Validate customer base and revenue consistency given the small scale and niche manufacturing activity.
• Assess any related party transactions or director loans that are not evident in the filings.
• Confirm absence of director disqualifications or adverse regulatory actions beyond the Companies House record.
• Investigate growth strategy or planned capital investment to support sustainability and scalability.