Company Number: 14383540

Analysis Date: 2025-07-20 14:40 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with persistent negative net current assets and shareholders’ funds over the last two years. The total assets less current liabilities remain negative, indicating an inability to cover short-term obligations with current assets. This financial position represents a high risk to creditors and investors.

2. Key Concerns:

• Negative Net Current Assets and Shareholders’ Funds: The company’s net current liabilities increased to £3,656 in 2024 from £4,633 in 2023, with shareholders’ funds also negative at £2,090. This suggests ongoing financial distress and potential insolvency risk.
• Low Cash Reserves: Cash balances are minimal (£1,872 in 2024), which may impair the company’s ability to meet immediate liabilities and operational expenses.
• Dependence on Director Loans: A significant portion of current liabilities (£13,416 in 2024) comprises loans, presumably from directors or related parties, indicating reliance on internal funding to sustain operations rather than external revenue or financing.

3. Positive Indicators:

• Timely Filing and Compliance: The company is up to date with both accounts and confirmation statements, showing regulatory compliance and good governance in filing obligations.
• Active Website and Market Presence: The company maintains an active website and contact channels, supporting its operational existence in the wholesale perfume and cosmetics sector.
• Intangible Assets Capitalisation: The presence of capitalised development costs (£1,566) indicates some investment in proprietary projects or products, which could provide future value.

4. Due Diligence Notes:

• Examine Director Loans: Clarify the nature, terms, and repayment plans of the £13,416 loans classified as current liabilities to assess the sustainability of this funding source.
• Review Profit and Loss Details: The company has not filed the profit and loss account; obtaining these details is critical to assess operational profitability and cash flow generation.
• Assess Business Model and Revenue Streams: Since the company is relatively new (incorporated 2022), investigate the revenue trends, client base, and market position to understand prospects for improvement.
• Evaluate Stock Valuation and Turnover: The increase in stock value to £6,500 warrants scrutiny regarding inventory turnover and potential obsolescence in the wholesale perfume industry.