Company Number: 13623720

Analysis Date: 2025-07-29 12:18 UTC

1. Risk Rating: MEDIUM
   While the company is solvent with positive net assets (£54,313 as of 2024) and no overdue filings, recent liquidity metrics show negative net current assets (£-4,699), which raises some short-term cash flow concerns. The micro-entity status and sole director/shareholder structure also suggest limited operational scale and potential dependency on one individual.

2. Key Concerns:

• Negative net current assets in the latest financial year indicate potential liquidity stress to meet short-term liabilities.
• The company is very small (micro entity) with only one employee and a single director/shareholder, increasing operational and governance concentration risk.
• Lack of detailed financial disclosures and no audit limit visibility into underlying profitability and cash flow trends, which are critical given micro-entity exemptions.

3. Positive Indicators:

• Net assets have increased significantly from £9,036 in 2023 to £54,313 in 2024, showing an accumulation of equity and fixed assets.
• Filings are up to date with no overdue accounts or confirmation statements, indicating compliance with regulatory requirements.
• The director is also the sole significant controller, simplifying decision-making and accountability.

4. Due Diligence Notes:

• Investigate the nature of fixed assets (increased from £11,537 to £59,012) to assess if these are productive assets or potentially illiquid investments.
• Review cash flow statements and profit & loss accounts (not provided here) to understand operational cash flow and profitability.
• Confirm if any contingent liabilities or off-balance sheet obligations exist despite the footnote stating "No," as micro-entity disclosures can be limited.
• Assess the business model sustainability given the micro scale, single employee, and sole director setup, particularly in the retail mail order/online sector.