Company Number: 12943407

Analysis Date: 2025-07-20 14:20 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in net current assets and net assets in the latest financial year, moving from positive £9,438 in 2022 to negative £9,050 in 2023. This indicates an inability to cover short-term liabilities with current assets and an overall negative equity position, raising material solvency concerns.

2. Key Concerns:

• Negative Net Current Assets: The current liabilities (£96,741) exceed current assets (£79,628) by £17,113 in 2023, signaling liquidity stress and potential cash flow difficulties.
• Negative Net Assets: The balance sheet shows net liabilities of £9,050 at 31 October 2023, which may indicate erosion of shareholder value and risk of insolvency.
• Shrinking Fixed Assets and Increasing Creditors: Fixed assets decreased from £10,346 to £8,063, while creditors rose sharply, suggesting operational or financial strain.

3. Positive Indicators:

• Consistent Employee Base: The company maintained an average of 4 employees over the past two years, indicating operational continuity.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, demonstrating compliance with regulatory requirements.
• Established Director: The sole director has been in position since incorporation with no adverse information noted.

4. Due Diligence Notes:

• Investigate reasons behind the sharp increase in current liabilities and negative working capital in 2023.
• Review cash flow statements and creditor aging schedules to assess short-term payment obligations and liquidity management.
• Examine if the company has any contingent liabilities or off-balance-sheet obligations impacting solvency.
• Assess the business model's viability in the wholesale flowers and plants sector given recent financial deterioration.
• Confirm whether there have been any director or shareholder loans, related party transactions, or restructuring efforts.