Company Number: 13790528

Analysis Date: 2025-07-29 13:05 UTC

1. Risk Rating: HIGH
   The company exhibits a significant decline in net assets from £10,000 at the end of 2022 to £1,200 at the end of 2023. The reduction in equity and total assets less current liabilities signals potential solvency challenges. The micro-entity scale with minimal assets and a single employee further heightens operational and financial risk.

2. Key Concerns:

• Deteriorating Financial Position: Net assets have dropped by 88% in one year, indicating possible losses or capital erosion.
• Minimal Working Capital Base: The latest accounts show very low net assets, which may be insufficient to cover unforeseen liabilities or support growth.
• Lack of Audit and Detailed Financials: As a micro-entity, the company is exempt from audit, limiting transparency around profitability, cash flow, and contingent liabilities.

3. Positive Indicators:

• Compliance with Filing Requirements: No overdue accounts or confirmation statements, indicating good regulatory compliance.
• Sole Director and Shareholder Control: Clear and stable governance with one individual owning 75-100% of shares and voting rights, allowing for swift decision-making.
• Active Website and Market Presence: The company maintains an active website with contact details and a defined SIC code related to e-commerce, signaling ongoing operations.

4. Due Diligence Notes:

• Investigate the cause of the major drop in net assets between 2022 and 2023, including reviewing any losses, impairments, or withdrawals.
• Obtain management accounts or cash flow statements to assess liquidity and operational cash generation.
• Confirm if there are any outstanding debts or contingent liabilities not reflected in the micro-entity accounts.
• Assess the business model and revenue streams given the micro scale and limited employee base.
• Review director's background and past conduct to evaluate governance risks.