Company Number: 14268122

Analysis Date: 2025-07-20 18:28 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with consistent net current liabilities and net negative shareholder funds over multiple years since incorporation.

2. Key Concerns:

• Negative Net Current Assets and Net Liabilities: The company has persistently reported net current liabilities of £1,390 and net assets/shareholders’ funds of -£1,390 for three consecutive years, indicating ongoing financial strain and inability to cover short-term obligations.
• Lack of Profit and Loss Reporting: The absence of a delivered profit and loss account limits visibility on revenue generation, expenses, and operational profitability, hindering assessment of business sustainability.
• Small Scale and Limited Financial Data: Being a micro-entity with only 2 employees and minimal asset base restricts operational scale and flexibility, potentially increasing vulnerability to market or cash flow shocks.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is current with its accounts and confirmation statement filings, suggesting adherence to regulatory obligations and governance discipline.
• Stable Employee Base: Average employee count of 2 over the last reported years may imply operational continuity without workforce volatility.
• Exemption from Audit: Micro-entity status and exemption from audit reduce administrative burden and costs, appropriate for company size.

4. Due Diligence Notes:

• Investigate Revenue Streams and Cash Flow: Obtain management accounts or bank statements to assess actual cash generation and operational viability, given negative net assets.
• Clarify Nature of Creditors: Understand the composition and terms of the £1,373 current liabilities to evaluate short-term repayment risk and creditor relationships.
• Director Background and Strategy: Review directors’ experience and business plans to assess capacity to address financial deficits and grow the business.
• Examine Related Party Transactions: Given negative net assets, check for any related party loans or informal funding arrangements supporting solvency.
• Assess Market Position in Wholesale Sector: Evaluate competitive positioning within the wholesale of electrical household appliances sector to determine growth prospects.