Company Number: 13034930

Analysis Date: 2025-07-29 20:53 UTC

1. Risk Rating: HIGH
   The company shows persistent net liabilities and negative shareholders' funds across four years, indicating solvency concerns. The large level of long-term liabilities relative to fixed assets and ongoing net current liabilities exacerbate the risk profile.

2. Key Concerns:

• Negative Net Assets: The company has consistently reported net liabilities (e.g., -£5,109 as of 2023), suggesting shareholders’ funds are eroded.
• High Long-Term Creditors: Creditors due after more than one year stand at £207,400, exceeding fixed assets and indicating possible over-leverage or reliance on debt financing.
• Working Capital Deficiency: Current liabilities exceed current assets by approximately £84,836 (2023), indicating liquidity stress and potential difficulty meeting short-term obligations.

3. Positive Indicators:

• Filing Compliance: The company is up to date with accounts and confirmation statement filings, demonstrating governance and regulatory compliance.
• Stable Fixed Assets: Fixed assets remain stable around £287k, suggesting maintained investment in tangible assets.
• Low Headcount: With only two employees (directors), operating costs may be low, potentially limiting cash burn.

4. Due Diligence Notes:

• Investigate Debt Terms: Clarify the nature, maturity, and covenants associated with the £207,400 long-term creditors to assess refinancing or repayment risks.
• Cash Flow Analysis: Obtain cash flow statements and management accounts to evaluate operational liquidity and real-time cash position.
• Directors’ Strategy: Understand management’s plan to address negative net assets and working capital deficits, including any capital injections or asset sales.
• Related Party Transactions: Verify if the indebtedness includes loans from directors or related parties, which could affect risk assessment.
• Profitability and Revenue: Review profit and loss details (not provided) to assess operational sustainability and revenue trends.

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