Company Number: 14761496

Analysis Date: 2025-07-20 18:27 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (£-1,499) at its first year-end, indicating insolvency on a balance sheet basis. Current liabilities exceed current assets, resulting in negative working capital and potential liquidity challenges.

2. Key Concerns:

• Negative Net Assets: The company’s liabilities exceed its assets, presenting solvency risk.
• Negative Net Current Assets: Current liabilities of £2,061 are significantly higher than current assets of £562, implying cash flow constraints to meet short-term obligations.
• Limited Operating History: Incorporated in March 2023, with just one employee and first year financials, there is limited evidence of operational stability or proven business model.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating compliance with statutory filing requirements.
• Clear Ownership and Control: Single majority shareholder/director (Matthew Clarke) simplifies governance and decision making.
• Active Website and Market Positioning: The company trades in online retail of wine, with an active website and clear brand messaging, suggesting an operational business presence.

4. Due Diligence Notes:

• Verify cash flow and funding sources to understand how the company is managing to cover short-term liabilities despite negative working capital.
• Review management plans to address current insolvency and business growth strategy to achieve positive net assets.
• Investigate related party transactions or shareholder loans that may not be reflected in the micro-entity accounts.
• Confirm the accuracy of financial statements and whether any contingent liabilities exist.
• Assess market positioning and competitive landscape of the online wine retail sector for sustainability prospects.