Company Number: 15054446

Analysis Date: 2025-07-20 13:00 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets and net liabilities, indicating a solvency risk. The balance sheet reports current assets of £2,018 versus current liabilities of £4,732, resulting in net current liabilities of £2,714. This shortfall suggests potential inability to cover short-term obligations.

2. Key Concerns:

• Negative net current assets (-£2,714) indicating insufficient working capital to meet immediate liabilities.
• Very limited asset base (no fixed assets) and minimal cash/resources, implying fragile operational capacity.
• The company is newly incorporated (August 2023) with only one employee and no audit, so financial history and operational track record are minimal.

3. Positive Indicators:

• No overdue filings for accounts or confirmation statements, demonstrating compliance with statutory deadlines and regulatory requirements.
• Sole director and 100% shareholder are the same individual, which can simplify decision-making and accountability.
• The company operates in an e-commerce sector (retail sale via internet), which typically requires low upfront capital.

4. Due Diligence Notes:

• Investigate the nature of current liabilities—are they trade payables, loans, or director loans? Understanding creditor mix is critical for assessing repayment risk.
• Review cash flow statements (if available) or bank statements to confirm liquidity position and operational cash burn rate.
• Clarify business model viability given minimal assets and working capital deficit; assess plans for capital injection or revenue generation.
• Confirm background and financial standing of the director/shareholder to gauge support capacity.
• Monitor future filings for any signs of worsening financial health or late submissions.