Company Number: 15167952

Analysis Date: 2025-07-20 19:04 UTC

1. Risk Rating: HIGH
   The company shows a significant net current liabilities position of £40,224 as at 31 March 2024, indicating that current liabilities exceed current assets substantially. This suggests an inability to meet short-term obligations from available liquid resources. Additionally, the company was incorporated recently (September 2023) and has no trading or income data, indicating early operational stage with negative working capital.

2. Key Concerns:

• Solvency Risk: The balance sheet indicates net liabilities of £40,224, signifying that total liabilities exceed assets, which may jeopardize the company’s ability to meet its financial obligations.
• Liquidity Issues: Current liabilities of £43,906 against current assets of only £3,682 point to potential cash flow difficulties in the near term.
• Operational Sustainability: Being a micro-entity incorporated less than a year ago with no reported revenue or profits, the business model and future cash generation capacity remain unproven.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, demonstrating compliance with statutory filing requirements.
• Clear Ownership and Control: The sole director and 100% shareholder is identified, which may simplify decision-making and governance.
• Micro-Entity Status: The company benefits from simplified reporting requirements, reducing administrative burden in its startup phase.

4. Due Diligence Notes:

• Investigate the nature and reason for the £43,906 current liabilities—whether these are trade creditors, loans, or other obligations.
• Review cash flow projections and funding plans to understand how the company intends to address the net liability position.
• Examine any related party transactions or loans from the sole director or shareholders that might impact solvency.
• Assess the business plan and market prospects in the retail furniture sector to evaluate operational viability.
• Verify absence of director disqualifications or compliance issues beyond filings.