Company Number: 12842974

Analysis Date: 2025-07-20 11:55 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, as evidenced by substantial net current liabilities and negative shareholders' funds in the most recent financial year.

2. Key Concerns:

• Severe Liquidity Shortfall: Current liabilities of £25,044 far exceed current assets of £3,380, resulting in a negative net current asset position of £21,664 as of 31 August 2024. This indicates potential difficulties in meeting short-term obligations.
• Negative Shareholders’ Funds: Shareholders’ funds have deteriorated from a positive £4,311 in 2023 to negative £21,249 in 2024, reflecting accumulated losses and weakening financial structure.
• Rapid Financial Deterioration: The company’s financial position has declined sharply over the last two years, moving from positive net assets and working capital in 2021 and 2022 to significant deficits in 2024, raising concerns about operational sustainability.

3. Positive Indicators:

• Timely Compliance: The company’s accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance.
• Experienced Director and PSC: The sole director and person with significant control has been in place since incorporation, suggesting stable management continuity.
• Small Scale Operations: The company is categorized as small and has minimal fixed assets, which may limit exposure to large capital expenditures.

4. Due Diligence Notes:

• Investigate the causes behind the sharp increase in current liabilities from £1,820 in 2023 to £25,044 in 2024, particularly the nature of “other creditors” which rose significantly.
• Review operational cash flows and creditor payment terms to assess whether short-term liquidity pressures are temporary or structural.
• Examine management plans for financial recovery or restructuring given the negative equity and working capital deficits.
• Confirm whether any contingent liabilities or related party transactions exist that may impact future financial stability.
• Assess the impact of the company’s SIC code (licensed carriers) on operational risks and capital requirements.