Company Number: 14193695

Analysis Date: 2025-07-29 12:35 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net current liabilities increasing sharply from £7,972 in 2023 to £37,242 in 2024, indicating an inability to meet short-term obligations. Negative net assets and shareholders’ funds further confirm financial distress.

2. Key Concerns:

• Severe liquidity shortfall: Current liabilities exceed current assets by a large margin (£43,107 vs £5,865), worsening year-on-year. This indicates potential cash flow problems and difficulty in meeting imminent liabilities.
• Negative net assets and shareholders’ funds: The company’s balance sheet shows net liabilities of £37,242 at the latest year-end, implying accumulated losses or creditor claims exceeding asset value.
• Limited scale and operational capacity: As a micro-entity with only one employee and minimal current assets, the company’s operational stability and ability to generate sustainable revenues seem constrained.

3. Positive Indicators:

• Compliance with filing requirements: Accounts and confirmation statements are up to date with no overdue filings, suggesting regulatory compliance and good governance in reporting.
• Clear business focus: Operating in retail via internet mail order with an active website and defined product niche (organic cotton bedding) may offer growth potential if financial challenges are addressed.
• No indication of director disqualification or insolvency procedures: The company is active and not in liquidation or administration, which implies management is maintaining control despite financial difficulties.

4. Due Diligence Notes:

• Investigate causes of increasing current liabilities and whether these are trade payables, loans, or other creditor types.
• Review cash flow statements and recent trading performance to assess operational viability and ability to reverse the liquidity decline.
• Clarify whether the company has access to additional financing or shareholder support to cover working capital deficits.
• Examine any contingent liabilities or off-balance sheet risks not disclosed in micro-entity accounts.
• Assess director plans or strategy for addressing solvency issues and achieving financial recovery.