Company Number: 13603665

Analysis Date: 2025-07-29 16:41 UTC

1. Risk Rating: HIGH
   The company shows significant and increasing negative net current assets and shareholders' funds over its short operating history, indicating persistent financial distress and an inability to cover short-term liabilities with current assets.

2. Key Concerns:

• Negative Working Capital: The company’s net current liabilities have nearly doubled from £16,352 in 2023 to £29,482 in 2024, highlighting worsening liquidity issues.
• Persistent Shareholders' Deficit: Negative shareholders’ funds of £29,482 in 2024, worsening over 3 consecutive years, suggest accumulated losses and erosion of owner equity.
• Small Scale and Limited Financial Data: As a micro-entity with only 3 employees on average, limited operational scale may restrict revenue generation and ability to absorb losses or secure financing.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating regulatory compliance.
• Stable Directorship and Ownership: Single director and majority shareholder Michael Rademacher has been in place since incorporation, providing continuity in management.
• Exemption from Audit: While this reduces transparency, it lowers administrative burdens and costs for the small company.

4. Due Diligence Notes:

• Investigate Cash Flow and Revenue Generation: Review trading performance, contracts, and cash flow statements to understand how the company intends to improve liquidity.
• Assess Going Concern Status: Examine directors’ reports and any external financing arrangements to evaluate viability given ongoing negative net assets.
• Review Director’s Plans: Clarify strategic plans from Mr. Rademacher to address losses and funding gaps, including potential capital injections or cost reductions.