Company Number: 13033976

Analysis Date: 2025-07-29 16:17 UTC

1. Risk Rating: HIGH
   Timeless Shine Ltd exhibits significant solvency and liquidity risks, with worsening net liabilities and negative working capital over recent years. The company’s financial position deteriorated materially between 2022 and 2023, indicating stress in meeting current obligations.

2. Key Concerns:

• Severe Negative Net Current Assets: The company had net current liabilities of £5,137 at the end of 2023, up from £1,600 the prior year, indicating an inability to cover short-term debts with available assets.
• Worsening Net Liabilities and Shareholders’ Funds: Net liabilities increased to £4,151 in 2023 from £156 in 2022, showing continued erosion of equity and financial stability.
• Director Loans Forming Majority of Creditors: Loans from directors rose sharply to £4,904 in 2023 from £1,580 in 2022, suggesting reliance on director funding to sustain operations, which may not be sustainable or reflect external financing capability.

3. Positive Indicators:

• Consistent Director Engagement: The sole director has remained in place since incorporation, indicating stable leadership.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, reflecting compliance with regulatory requirements.
• Tangible Assets Present: The company holds some tangible assets (£986 net book value), which could be a base for operational continuity or collateral.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans to understand repayment expectations and impact on liquidity.
• Review cash flow statements and bank statements to assess operational cash generation and short-term liquidity management, as cash on hand is almost negligible (£1 in 2023).
• Confirm if the company has any plans or recent activity to improve capital structure or raise external funding given deteriorating equity.
• Assess if there are any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Verify the operational status and client base to evaluate business sustainability, given only one employee and minimal fixed assets.