Company Number: 14007593

Analysis Date: 2025-07-29 21:13 UTC

1. Risk Rating: MEDIUM
   The company is very new (incorporated 2022) and operates as a micro-entity with minimal financial resources. The decline in current assets and net assets from 2023 to 2024 is a concern, though no liabilities appear overdue. Absence of employees and limited financial data restrict a full assessment but indicate a small-scale operation with potentially limited operational breadth.

2. Key Concerns:

• Declining Net Assets and Current Assets: Net assets dropped from £5,341 in 2023 to £1,329 in 2024, and current assets similarly declined, suggesting possible cash burn or asset depletion.
• Minimal Working Capital: Current assets of only £1,000 and net current assets £1,229 as of 2024 indicate very limited liquidity, which may impede meeting short-term obligations if business activity increases.
• Single Director and Shareholder Control: One individual holds 75-100% share ownership and directorship, concentrating control and potentially raising governance and succession risks.

3. Positive Indicators:

• Timely Filings and Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and good governance practices.
• No Current Liabilities Reported: The absence of current liabilities in the latest filings reduces immediate solvency pressure.
• Limited Financial Complexity: As a micro-entity with no employees, operating costs may be minimal, reducing risk of operational losses from payroll or overhead.

4. Due Diligence Notes:

• Investigate the cause of the significant reduction in current assets and net assets between 2023 and 2024, including cash flow statements and any related party transactions.
• Confirm the nature and scale of business operations given SIC code 47990 (other retail sale not in stores), to assess revenue generation and sustainability.
• Review director background and financial support to the company, particularly given sole control by one individual and absence of employees.
• Examine any contingent liabilities or unreported debts, as micro-entity accounts may omit detailed disclosures.
• Verify if the company has any trading history or contracts that would support ongoing viability.