Company Number: 14850090

Analysis Date: 2025-07-29 17:54 UTC

1. Risk Rating: HIGH
   The company exhibits negative net current assets and net liabilities after its first financial year, indicating an inability to meet short-term obligations with available current assets. The loss reported, combined with minimal turnover and zero employees, suggests limited operational activity and financial instability at this early stage.

2. Key Concerns:

• Negative working capital of £2,847 implies liquidity issues and potential cash flow constraints.
• Net liabilities position with no positive equity raises solvency concerns and questions on the company’s capacity to continue as a going concern without additional funding.
• Absence of employees and low turnover (£18,473) in a wholesale sector may indicate limited business operations or market traction.

3. Positive Indicators:

• Company is compliant with all filing deadlines; no overdue accounts or confirmation statements, reflecting good regulatory compliance.
• Single director and 100% shareholder demonstrates clear governance structure and control, reducing management complexity.
• Micro-entity status limits filing requirements, which is appropriate given the company’s current scale of operations.

4. Due Diligence Notes:

• Investigate the source of funds supporting current liabilities and any plans for capital injection or loans to address the negative net assets.
• Assess the business model viability and pipeline for growth given the very low turnover and operating losses.
• Confirm absence of related party transactions or contingent liabilities that may exacerbate financial risks.
• Review director’s strategy and timeline for achieving operational break-even or profitability.