XPRESSIONS OF ME LTD

Executive Summary

XPRESSIONS OF ME LTD currently faces high risk primarily due to negative net assets and working capital deficits indicating solvency and liquidity challenges. While compliance with filing obligations is maintained, the financial trajectory suggests operational instability. Further due diligence is warranted to understand liability composition and business outlook before considering investment.

XPRESSIONS OF ME LTD - Analysis Report

Company Number: 12472395

Analysis Date: 2025-07-29 14:56 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity issues, evidenced by persistent negative net assets and net current liabilities over recent years. The worsening financial position, with net liabilities increasing from £157k in 2023 to over £206k in 2024, signals elevated financial risk.

2. Key Concerns:

• Solvency Risk: Negative net assets of £206,822 indicate the company’s liabilities exceed its assets substantially, raising doubts about its ability to meet long-term obligations.
• Liquidity Concerns: Net current liabilities of £146,777 as of the latest accounts show a working capital deficit, suggesting potential cash flow difficulties to pay short-term debts.
• Operational Stability: Reduction in average employees from 4 to 3 and significant fluctuations in current assets (dropping from £4.5m to £30k) may point to instability or business contraction.

3. Positive Indicators:

• The company remains active and is up to date with both accounts and confirmation statement filings, indicating compliance with Companies House requirements.
• The micro-entity accounting standard applied keeps reporting simple and reduces administrative burden.
• Recent director appointment in September 2023 may bring new management perspective.

4. Due Diligence Notes:

• Investigate nature and cause of large current liabilities, especially the £177,177 short-term creditors and £60,000 long-term creditors.
• Clarify reasons behind drastic reduction in current assets from prior year (from £4.5m to £30k).
• Assess business model viability given dual SIC codes (management consultancy and wholesale of watches/jewellery) and whether these lines generate sustainable revenue.
• Review any related party transactions or contingent liabilities that may not be fully disclosed.
• Consider director background and plans to address financial distress.