Company Number: 13517673

Analysis Date: 2025-07-20 12:42 UTC

1. Risk Rating: HIGH
   Justification: The company’s latest accounts show net current liabilities and negative net assets, indicating solvency issues. Despite being micro-entity sized, the net assets have deteriorated from £1,062 in 2021 to -£13,928 in 2024, signalling worsening financial health and potential inability to meet liabilities as they fall due.

2. Key Concerns:

• Solvency risk is elevated due to negative net assets and net current liabilities (£15,446 current assets vs £29,374 current liabilities in 2024).
• Declining liquidity position over the past years, with current assets decreasing and liabilities increasing slightly, worsening working capital.
• The company is very small with only 3 employees and a single director who is also the majority shareholder, raising potential governance and operational concentration risks.

3. Positive Indicators:

• The company remains compliant with filing deadlines for both accounts and confirmation statements, demonstrating regulatory adherence.
• The director has maintained continuity since incorporation, reducing governance disruptions.
• The business operates in niche retail and service activities, supplying schools, NHS outlets, and charities, indicating some market penetration and client diversification.

4. Due Diligence Notes:

• Review detailed profit and loss performance to understand underlying causes of asset deterioration and whether losses are recurring or one-off.
• Investigate cash flow statements for signs of operational cash shortages or reliance on director loans or external funding.
• Confirm if there are any contingent liabilities, overdue debts, or creditor pressures not visible in the micro-entity accounts.
• Assess the strategic outlook and plans for addressing the weak financial position, including any restructuring or capital injections.
• Verify absence of any director disqualifications or legal proceedings against the company or its director.