Company Number: 13294054

Analysis Date: 2025-07-20 13:51 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, demonstrated by persistently high current liabilities far exceeding current assets, resulting in large negative net current assets and shareholders' deficit. The financial position deteriorated over the reported years, and substantial related party loans indicate reliance on director funding.

2. Key Concerns:

• Severe liquidity shortfall: Current liabilities (£783,564) are approximately 20 times greater than current assets (£38,881) as of 31 March 2024, resulting in a negative working capital position of -£744,683. This indicates an inability to cover short-term obligations from available liquid resources.
• Negative net assets and shareholders’ funds: The company shows a substantial accumulated deficit with net assets at -£368,779 and shareholders’ funds at -£368,879, suggesting ongoing losses and erosion of equity.
• Dependence on related party loans: Over £387,000 is owed to the director, an interest-free loan repayable on demand, implying operational funding is heavily dependent on insider financing rather than sustainable cash flows or external debt.

3. Positive Indicators:

• No overdue filings: The company is compliant with statutory filing deadlines for accounts and confirmation statements, indicating good regulatory compliance and governance in this respect.
• Going concern assertion: The directors have stated they have a reasonable expectation to meet liabilities for the next 12 months, suggesting some plan or confidence in continuing operations despite adverse financials.
• Tangible assets base: The company holds tangible fixed assets valued at £464,079, which although impaired and depreciated, may provide some collateral value or operational utility.

4. Due Diligence Notes:

• Investigate the nature and sustainability of the director’s loan and any repayment plans or risks associated with its demand feature.
• Review the company’s operational cash flows, revenue trends, and business model viability given the negative equity and heavy liabilities.
• Assess contingencies and provisions totaling £88,175 for potential liabilities that may affect financial stability.
• Examine management plans or restructuring efforts to improve liquidity and solvency.
• Validate the valuation and usability of tangible fixed assets, and confirm no impairments or disposals are expected.
• Confirm the absence of any outstanding regulatory or legal issues beyond filings.