Company Number: 13014442

Analysis Date: 2025-07-20 12:50 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position and steady equity growth, which supports solvency, but the high level of long-term creditors relative to current assets and persistent negative working capital indicate liquidity strain.

2. Key Concerns:

• Significant long-term liabilities (£329,827) compared to very low current assets (£2,854) suggest potential challenges in meeting short-term obligations or refinancing debt.
• Negative net current assets (working capital deficit of £1,295 in 2025) may impair operational cash flows, increasing risk of payment delays or liquidity crises.
• The company’s financial statements are prepared under micro-entity provisions without audit, limiting transparency and external assurance on financial health.

3. Positive Indicators:

• Net assets and shareholders’ funds have increased substantially from £16,294 in 2021 to £57,378 in 2025, indicating retained earnings or capital injections strengthening the balance sheet.
• Fixed assets remain stable at £388,500, indicating ownership of substantial long-term assets which could provide collateral or value in distress scenarios.
• The company is compliant with filing deadlines for accounts and confirmation statements, reflecting good regulatory adherence.

4. Due Diligence Notes:

• Clarify the nature and terms of the substantial long-term creditors to understand repayment schedules, interest obligations, and refinancing risk.
• Investigate cash flow statements and operating performance to assess whether current liabilities and working capital deficits are manageable in day-to-day operations.
• Review director’s background and governance practices given sole directorship and absence of external audit, to evaluate operational stability and oversight adequacy.