Company Number: 15113598

Analysis Date: 2025-07-19 12:23 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net liabilities and negative net current assets shortly after incorporation. This presents a high risk for meeting obligations and operational sustainability.

2. Key Concerns:

• Negative net assets (£-1,013) and net current liabilities (£-2,413) only one year after incorporation indicate financial distress.
• Minimal current assets (£53) compared to current liabilities (£2,466), suggesting poor liquidity and potential cash flow difficulties.
• Single director/secretary and sole shareholder is a young individual with limited disclosure of operational experience, raising governance and operational risk.

3. Positive Indicators:

• The company is current on all statutory filings with no overdue accounts or confirmation statements, reflecting compliance with regulatory requirements.
• Micro-entity status limits filing complexity, reducing administrative burdens.
• Operating in a growing retail sector (mail order/Internet sales) which can support scalability if managed well.

4. Due Diligence Notes:

• Investigate the nature and valuation of the fixed assets (£1,550) and whether they are operationally productive or just initial setup costs.
• Review cash flow projections and funding plans to address negative working capital and net liabilities.
• Assess the director’s background and business plan credibility given the company’s early stage and financial position.
• Confirm if there are any contingent liabilities or related party transactions not disclosed.
• Monitor future filings closely for signs of improvement or further deterioration.