Company Number: 13681903

Analysis Date: 2025-07-20 12:04 UTC

1. Risk Rating: LOW
   The company demonstrates positive net current assets and net assets as of the latest financial year, indicating an improved financial position. There are no overdue filings or signs of regulatory non-compliance. The micro-entity status and small employee count suggest modest operational scale but manageable risks.

2. Key Concerns:

• Historical Negative Equity: The company had negative net assets and working capital in previous years (2021 and 2022), which may indicate initial undercapitalization or operational losses.
• Limited Financial Disclosure: Being a micro-entity, the company provides minimal financial information, including no profit and loss account, restricting comprehensive assessment of profitability and cash flow dynamics.
• Concentration of Control: Significant control is concentrated in a small number of individuals (one PSC holds 75-100% shares and voting rights), which may pose governance and decision-making risks for investors seeking broader oversight.

3. Positive Indicators:

• Strong Recent Financial Position: As of April 2024, net current assets stand at £28,910 with net assets matching this figure, indicating improved liquidity and solvency.
• Timely Compliance: No overdue accounts or confirmation statements, reflecting good regulatory compliance and governance practices.
• Stable Operational Scale: The company maintains a consistent employee count (2 employees) and operates in a clear retail niche (sale of sports goods and bicycles), which suggests operational stability.

4. Due Diligence Notes:

• Review Full Profit and Loss Data: Since profit and loss accounts were not filed, obtaining internal financial statements or management accounts would help assess profitability and cash flow trends.
• Assess Impact of Director Changes: One director resigned in October 2024 and understanding the implications for management continuity and strategy is important.
• Investigate Related Party Transactions and Capital Contributions: Given the concentrated ownership and previous negative equity, verification of any shareholder loans, capital injections, or related party dealings is advisable.