VARIETY FUNERALS LIMITED

Executive Summary

VARIETY FUNERALS LIMITED is a recently incorporated micro-entity operating in the funeral services sector. Its first set of accounts reveal marginally negative working capital and a very low equity base, raising concerns about short-term liquidity and solvency. However, regulatory compliance is current, and ownership structure is straightforward, warranting close monitoring of cash flows and operational viability in subsequent periods.

VARIETY FUNERALS LIMITED - Analysis Report

Company Number: 14615251

Analysis Date: 2025-07-29 18:57 UTC

1. Risk Rating: HIGH
   The company’s financials from its first reporting period show net current liabilities (current liabilities exceeding current assets), minimal fixed assets, and very low equity. This indicates potential solvency and liquidity risks for a new business in a service sector requiring upfront costs and working capital.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£28,746) exceed current assets (£27,794) by £952, suggesting possible short-term liquidity stress.
• Low Equity Base: Shareholders’ funds stand at only £3,002, limiting the company’s ability to absorb losses or fund operations internally.
• Newly Incorporated with Limited Operating History: Incorporated in January 2023, the company has less than two years of operating history, making it difficult to assess performance trends and operational stability.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement are filed on time, indicating compliance with regulatory obligations.
• Single Director with Full Control: Mrs. Sally Howarth owns 75-100% of shares and voting rights, which can streamline decision-making.
• Micro-Entity Status: This reduces administrative burden and filing complexity, suitable for a small startup phase.

4. Due Diligence Notes:

• Investigate cash flow statements or bank statements (not provided) to assess actual liquidity and operational cash burn.
• Understand the business model and revenue generation timeline given the funeral sector's capital and working capital demands.
• Review any related party transactions or director loans which might support liquidity but are not reflected in the balance sheet.
• Confirm no contingent liabilities or off-balance-sheet obligations exist that could impact solvency.
• Monitor director’s background for any regulatory or conduct issues; none are indicated here.