Company Number: 14720526

Analysis Date: 2025-07-20 15:48 UTC

1. Risk Rating: MEDIUM
   Justification: The company is newly incorporated (March 2023) with a first financial year ending March 2024. The financials show a modest net current asset position and positive shareholders’ funds, but also current liabilities nearing total current assets, which suggests limited liquidity buffer. Lack of profit and loss details restricts deeper assessment of operational performance and cash flow. No overdue filings or liquidation status indicate compliance and operational continuity.

2. Key Concerns:

• Liquidity tightness: Current liabilities (£92,367) are close to current assets (£108,126), leaving a small net working capital (£15,759), which may constrain operational flexibility.
• Limited financial history: Being a new company with only one accounting period filed, there is insufficient data to assess profitability, cash flow trends or financial resilience.
• Concentrated ownership and management: Shareholding and directorship largely controlled by related individuals at the same address, potentially increasing governance and succession risks.

3. Positive Indicators:

• Compliance: No overdue accounts or confirmation statements, demonstrating adherence to statutory filing deadlines.
• Positive equity: Shareholders’ funds of £16,146 indicate the company is not insolvent at balance sheet date.
• Cash balance: Cash of £72,283 represents a significant portion of current assets, evidencing some liquidity available to meet immediate obligations.

4. Due Diligence Notes:

• Review management accounts or cash flow statements if available to gauge ongoing liquidity and profitability.
• Investigate the nature and terms of the other creditors (£80,573) to understand the timing and risk of cash outflows.
• Assess business plan or market positioning in the specialised retail of games and toys sector to determine operational sustainability.
• Confirm any related party transactions given the ownership and director commonalities.
• Monitor future filings for signs of growth, profit generation, or emerging financial stress.