Company Number: 13499154

Analysis Date: 2025-07-29 14:56 UTC

1. Risk Rating: HIGH
   The company has persistent negative net assets and net current liabilities over the last four years, indicating ongoing solvency issues. The micro-entity scale and limited current assets relative to liabilities raise substantial liquidity concerns.

2. Key Concerns:

• Negative net assets and working capital each year, with net liabilities increasing from £-3,629 in 2021 to £-4,103 in 2024, signaling erosion of shareholder funds and financial distress.
• Current liabilities nearly double current assets in the latest year (£8,349 vs £4,486), suggesting potential difficulty meeting short-term obligations.
• Sole director and 100% shareholder concentration may pose governance risk and limit oversight, especially given financial struggles.

3. Positive Indicators:

• The company remains compliant with filing deadlines, with no overdue accounts or confirmation statements, which shows adherence to regulatory requirements.
• Operating as a micro-entity with minimal employees and limited scale may reduce operational complexity and overhead costs.
• The business is active and engaged in an e-commerce retail sector (mail order/Internet sales), which can offer flexible revenue opportunities if managed prudently.

4. Due Diligence Notes:

• Investigate the company’s cash flow statements (not provided) to assess liquidity and operational cash burn or generation.
• Understand the nature of current liabilities—are these trade payables, loans, or accruals—and their maturity profile.
• Assess the business plan or strategy to address ongoing losses and negative equity, including capital injection plans or restructuring.
• Review credit history and any contingent liabilities or off-balance sheet obligations.
• Confirm background and experience of the sole director to evaluate operational and financial management capability.