Company Number: 14017674

Analysis Date: 2025-07-29 15:41 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in financial position as of 30 April 2024, with net liabilities of £22,960 and negative net current assets of £8,439. This indicates solvency concerns and potential inability to meet short-term obligations.

2. Key Concerns:

• Negative net assets and net current liabilities as of the latest financial year, indicating potential insolvency risk.
• Significant negative debtor balance (£-17,265) that suggests possible accounting anomalies or uncollectible receivables.
• Large outstanding creditors due after more than one year (£14,521) and previously a directors’ loan account balance of £20,855 now absent, implying possible repayment or reclassification, which requires clarification.

3. Positive Indicators:

• The company is current with statutory filings (accounts and confirmation statement), showing regulatory compliance.
• Ownership and control are consolidated under a single PSC, potentially allowing for clear decision-making and governance.
• The business is classified under retail sale via internet/mail order, which can offer scalable revenue opportunities if operational issues are resolved.

4. Due Diligence Notes:

• Investigate the nature and cause of the negative debtor balance; verify if this is a reporting error, provision, or related party transaction.
• Clarify the status and terms of the creditors falling due after more than one year, particularly what these liabilities represent and their impact on cash flows.
• Review cash flow statements and management accounts for the current year to assess liquidity trends beyond the balance sheet snapshot.
• Confirm the status and terms of any director loans or related party financing and any changes from prior years.
• Evaluate the business model and revenue generation given the negative financial position to determine sustainability.