Company Number: 14120765

Analysis Date: 2025-07-29 17:25 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns due to persistent negative working capital and minimal net asset value. The high level of long-term liabilities compared to assets suggests potential difficulty in meeting obligations.

2. Key Concerns:

   • Negative Net Current Assets: The company consistently reports net current liabilities around £79,000, indicating liquidity issues and potential cash flow constraints.
   • Low Net Assets/Shareholders’ Funds: Despite a slight improvement in the latest year, net assets remain marginal (£1,079), reflecting weak equity backing and potential insolvency risk.
   • Significant Long-Term Creditors: Creditors falling due after more than one year total approximately £178,000, exceeding fixed assets, which may imply over-leverage or reliance on debt financing without sufficient asset cover.

3. Positive Indicators:

   • Timely Filing Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
   • Stable Fixed Asset Base: Fixed assets remain constant at £258,600, suggesting some underlying asset value to support operations.
   • Experienced Management: Directors and persons with significant control have been in place since incorporation with no negative records, implying stable leadership.

4. Due Diligence Notes:

   • Investigate the nature and terms of the long-term creditors, including repayment schedules and covenants.
   • Review cash flow statements and bank facilities to assess liquidity management and ability to meet short-term obligations.
   • Obtain information on business operations and revenue streams to evaluate sustainability and plans to improve financial position.
   • Confirm no contingent liabilities or off-balance-sheet exposures that could exacerbate financial risk.
   • Clarify the reason for persistent working capital deficits and whether there is shareholder support or plans for capital injection.