Company Number: 13023131

Analysis Date: 2025-07-20 14:20 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net current assets and shareholders’ funds over multiple years, indicating ongoing solvency issues. The liabilities substantially exceed current assets, raising concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative Working Capital: Net current liabilities of £688 (2023) and £915 (2022) show the company’s current liabilities significantly exceed current assets, suggesting liquidity strain.
• Consistent Shareholders’ Deficit: Shareholders’ funds have been negative since incorporation, worsening from £31 positive in 2020 to -£687 in 2023, indicating accumulated losses and erosion of equity.
• Minimal Share Capital and Scale: Share capital is only £1, and the company operates as a micro-entity with very limited assets and turnover, which may limit financial resilience and operational flexibility.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with statutory filings (accounts and confirmation statement), with no overdue deadlines, indicating regulatory compliance.
• Active Status: The company remains active and not under liquidation or administration, showing ongoing operation.
• Single Director and Ownership: Clear ownership and control by one director (Mr Yossi Rose) simplifies governance and decision-making, which can be an advantage in small businesses.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities (£950 each year), including whether these are trade creditors, loans, or related party debts.
• Assess cash flow statements and bank balances (not provided) to understand liquidity beyond balance sheet snapshots.
• Review business model viability and revenue trends, given the industry (retail sale of mobile phones) and micro entity status.
• Clarify plans or evidence for recapitalization or turnaround, given persistent losses and negative equity.
• Confirm absence of director disqualifications or legal/regulatory actions against the director or company.