Company Number: 13728128

Analysis Date: 2025-07-20 14:59 UTC

1. Risk Rating: MEDIUM
   The company shows very limited net assets (£689) and persistent negative working capital, indicating potential liquidity pressures. However, it remains active, compliant with filings, and holds significant fixed assets. The solvency risk is moderate given the balance sheet structure and debt levels.

2. Key Concerns:

• Negative net current assets (~£121k) highlight potential short-term liquidity constraints, raising concerns about meeting immediate obligations.
• High long-term creditors (£334k) relative to net assets suggest substantial leverage, possibly stressing financial flexibility.
• Minimal shareholder funds and a very small net asset base indicate limited equity buffer to absorb losses or financial shocks.

3. Positive Indicators:

• The company owns substantial fixed assets (~£456k), which may support borrowing capacity or be realizable in distress.
• No overdue filings or compliance issues noted, reflecting good governance and regulatory adherence.
• The business is still active with directors in place and a clear ownership structure, supporting operational continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess repayment risks and covenant obligations.
• Review cash flow statements or management accounts (if available) to evaluate liquidity and operational cash generation.
• Understand the business model sustainability and revenue streams, given the micro-entity filing category and limited employee count.
• Confirm any contingent liabilities or off-balance sheet items that could further impact solvency.