THE STAPLE REMEDY LIMITED

Executive Summary

The Staple Remedy Limited demonstrates a high-risk profile primarily due to its persistent negative net assets and low liquidity. While regulatory compliance is maintained, operational sustainability and solvency appear challenged given the financial position and minimal cash reserves. Further analysis into liabilities and business viability is recommended before investment consideration.

THE STAPLE REMEDY LIMITED - Analysis Report

Company Number: 12734832

Analysis Date: 2025-07-29 13:54 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by consistently negative net current assets and net assets over the last four years. The liabilities substantially exceed cash and current assets, indicating an inability to meet short-term obligations without external support.

2. Key Concerns:

• Negative Net Assets and Current Liabilities Exceeding Current Assets: The financials show negative net current assets of approximately £3,862 in 2024 and negative net assets, signifying that liabilities surpass assets. This points to potential insolvency risk.
• Minimal Cash Reserves: Cash holdings remain extremely low (£102 in 2024), which likely impairs the company’s ability to operate day-to-day and cover immediate expenses.
• Sole Director and Single Employee: The company operates with only one director and one employee, which may raise operational sustainability questions, particularly in case of absence or incapacity.

3. Positive Indicators:

• Timely Filing Compliance: The company is up to date with both accounts and confirmation statement filings, demonstrating regulatory compliance and governance discipline.
• Stable Shareholders’ Funds (Though Negative): While negative, shareholders’ funds have remained relatively stable over recent years, not showing further deterioration.
• Accounting Prepared by Chartered Accountants: The involvement of a professional accounting firm in preparing accounts suggests some degree of financial oversight.

4. Due Diligence Notes:

• Investigate the nature and maturity of current liabilities to assess the short-term cash flow requirements and potential restructuring plans.
• Review the company’s business plan or trading performance to understand how it intends to return to positive net asset status and generate sustainable cash flows.
• Clarify if there are any related party loans or director’s financial support that mitigate insolvency risks.
• Confirm no director disqualifications or governance issues exist beyond the limited data provided.