Company Number: 12835506

Analysis Date: 2025-07-19 12:13 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net current assets and shareholders' funds over multiple years, indicating ongoing solvency challenges. The minimal cash reserves relative to current liabilities and reliance on directors’ current accounts as creditors further exacerbate liquidity risk.

2. Key Concerns:

• Negative Working Capital: Consistently negative net current assets (-£1,228 in 2024) suggest the company’s current liabilities exceed its current assets, posing a risk to meeting short-term obligations.
• Reliance on Directors’ Accounts: A significant portion (£65,288 in 2024) of current liabilities are amounts owed to directors, indicating dependence on director funding rather than operational cash flow.
• Lack of Cash Reserves: The company holds negligible cash (£6 in 2024), limiting its ability to cover immediate expenses without additional financing.

3. Positive Indicators:

• Timely Filing: All statutory accounts and confirmation statements are filed on time with no overdue filings, indicating compliance with regulatory requirements.
• Stable Ownership and Management: The sole director and 100% shareholder, Mr. Gurinder Singh Dhillon, has maintained consistent control since incorporation, which may facilitate streamlined decision-making.
• No Audit Requirement: The company qualifies for audit exemption under small company provisions, reducing administrative burden and costs.

4. Due Diligence Notes:

• Examine Debtors’ Quality: Debtors amount to £64,336 (2024), nearly all current assets; verification of collectability and aging of receivables is critical to assess liquidity risk.
• Review Directors’ Loans Terms: Clarify the nature and terms of directors’ current accounts liabilities to evaluate potential repayment schedules or risk of calls for repayment.
• Assess Business Model and Revenue Streams: Limited information on operations suggests investigation into revenue sources, profitability, and sustainability is needed.
• Confirm No Contingent Liabilities: Check for any undisclosed liabilities or obligations that might further impact solvency.