Company Number: 12927596

Analysis Date: 2025-07-29 20:08 UTC

1. Risk Rating: MEDIUM
   The company holds significant fixed assets but exhibits a weakening liquidity position with current liabilities close to current assets and a small net current asset deficit in the latest year. While it is not in formal distress and remains active with up-to-date filings, the liquidity tightness and substantial borrowings represent a moderate risk.

2. Key Concerns:

• Liquidity pressure reflected by negative net current assets (£-840) as of 31 October 2024, indicating potential cash flow constraints in meeting short-term obligations.
• Large long-term creditors (£221,313) relative to net assets (£31,054), suggesting high leverage and dependency on external financing.
• Limited turnover and employee base (1 employee), which may impact operational scalability and resilience.

3. Positive Indicators:

• Fixed assets remain stable at £251,212 with no impairments or disposals, indicating asset base stability.
• Company has filed accounts and confirmation statements on time, demonstrating compliance with regulatory obligations.
• Directors express confidence in ongoing sales growth and profitability with a going concern basis adopted in accounts.

4. Due Diligence Notes:

• Investigate nature and terms of the significant long-term liabilities to assess repayment risks and covenants.
• Review cash flow forecasts and working capital management to confirm ability to meet short-term liabilities.
• Confirm revenue streams and profitability trends since turnover details are not disclosed; assess customer concentration and contract stability.
• Validate valuation basis of fixed assets given the lack of depreciation and whether these are encumbered.
• Review director backgrounds for any governance or conduct concerns, noting limited public information on nationality and occupation.