Company Number: 12390236

Analysis Date: 2025-07-20 19:14 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent net current liabilities, negative working capital, and minimal net assets. Shareholders’ funds are marginal and have decreased compared to earlier years. There is also a significant balance owed to directors, indicating potential reliance on director loans. These factors collectively raise concerns regarding solvency and liquidity.

2. Key Concerns:

• Liquidity and Working Capital Deficit: The company has negative net current assets (£-19,035 as of 2025) consistently over recent years, indicating insufficient short-term assets to cover current liabilities.
• Minimal Net Assets: Net assets are very low (£849 in 2025) and have shown a downward trend from £14,303 in 2022, signaling erosion of equity and weak financial buffer.
• Director Loans: A significant amount (£31,155) is owed to directors, which may reflect cash flow shortfalls and dependence on director funding rather than operational cash generation.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are filed on time, demonstrating compliance with statutory requirements.
• Active Status & Incorporation Date: The company is active and relatively recently incorporated (2020), which may imply ongoing business operations and potential for growth.
• Fixed Assets Presence: Fixed assets represent a reasonable portion (£85,490), suggesting some tangible or intangible capital investment.

4. Due Diligence Notes:

• Review detailed income statements and cash flow statements (not filed publicly) to assess operational profitability and cash generation.
• Investigate the nature and terms of director loans, including repayment schedules and any guarantees or personal liabilities.
• Understand the company’s business model and client base within the SIC code 74909 to evaluate operational sustainability.
• Verify whether there are any contingent liabilities or off-balance-sheet obligations not disclosed in micro-entity filings.
• Confirm if the decrease in net assets and persistent working capital deficits are due to operational losses or other non-recurring factors.