Company Number: 13574625

Analysis Date: 2025-07-29 16:57 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (£-39,295) worsening from the prior year (£-21,175) despite stable fixed assets, with substantial long-term creditors (£451,243) exceeding tangible assets. This indicates solvency concerns and potential inability to meet obligations without additional capital. The micro-entity classification and minimal current assets (£4) relative to significant liabilities suggest liquidity stress.

2. Key Concerns:

• Solvency Risk: Net liabilities and negative equity persist, reflecting undercapitalization and potential balance sheet insolvency.
• Liquidity Issues: Current assets are negligible (£4) against current liabilities (£12,435), indicating poor short-term liquidity and potential cash flow constraints.
• Leverage and Debt Levels: Long-term creditors exceed fixed assets, implying heavy reliance on external financing that may be unsustainable.

3. Positive Indicators:

• Stable Fixed Assets: Tangible assets remain consistent (£424,379), potentially providing some collateral value.
• Compliance: No overdue filings; accounts and confirmation statements are up to date, indicating regulatory compliance and good governance on reporting.
• Continuity: The company is active and has maintained operations with at least one employee, showing ongoing business activity.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£451,243) to assess repayment obligations and potential refinancing risks.
• Review cash flow statements (not provided) to understand operational cash generation or outflows, critical given minimal current assets.
• Clarify the source of funding that sustains the company given negative equity and poor liquidity metrics.
• Evaluate management plans to address negative net assets and improve financial stability.
• Confirm whether there are any contingent liabilities or off-balance-sheet risks not disclosed in micro-entity accounts.