Company Number: NI671026

Analysis Date: 2025-07-20 17:29 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net current asset position and equity, but the presence of significant long-term creditors relative to net assets raises some solvency concerns typical for a micro-entity. Limited financial disclosures and small size increase uncertainty.

2. Key Concerns:

• Long-Term Debt Burden: Creditors due after more than one year amount to £80,543, which is over three times the net assets (£23,722), indicating leverage that could threaten solvency if cash flows weaken.
• Small Scale and Workforce: With only one employee (including directors) and micro-entity status, operational resilience and capacity to scale or absorb shocks may be limited.
• Limited Financial Transparency: Prepared under micro-entity exemptions without audit reduces the detail and assurance available on financial health and governance.

3. Positive Indicators:

• Positive Working Capital: Net current assets of £74,882 indicate that the company can meet short-term liabilities.
• Timely Compliance: Accounts and confirmation statements are up to date, showing good regulatory compliance and governance discipline.
• Consistent Net Assets: Net assets increased from £17,298 in 2022 to £23,722 in 2023, suggesting some retained profitability or asset growth.

4. Due Diligence Notes:

• Clarify the nature and terms of the long-term creditors to assess repayment risk and covenants.
• Review cash flow statements (not provided) to evaluate liquidity beyond balance sheet snapshots.
• Investigate business model sustainability given the small operational footprint and market sector (retail sale via stalls and non-specialised stores).
• Confirm absence of any director disqualifications or regulatory issues, although none are indicated here.
• Assess potential related party transactions given directors’ shared address and limited staff.