Company Number: 14119892

Analysis Date: 2025-07-20 18:56 UTC

1. Risk Rating: HIGH
   The company displays significant solvency concerns with net liabilities increasing to £61,651 as of May 2024. Negative net current assets and persistent net losses indicate an inability to meet short-term obligations without external support.

2. Key Concerns:

• Negative Net Assets and Working Capital: Net current liabilities of £76,552 and net liabilities of £61,651 are materially negative for a micro entity, indicating poor financial health.
• Rapid Deterioration of Financial Position: The net liabilities increased by over 60% from the previous year, suggesting escalating financial stress.
• Limited Operational Scale and Resources: With only 3 employees and limited fixed assets, the business may lack operational resilience and flexibility to manage cash flow pressures or absorb shocks.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s accounts and confirmation statement are up to date with no overdue filings, showing regulatory compliance.
• Stable Management and Ownership: The sole director and 75-100% shareholder is actively engaged, which can facilitate swift decision-making.
• Growth in Fixed and Current Assets: Increase in fixed assets and current assets from 2023 to 2024 may reflect some investment or growth efforts.

4. Due Diligence Notes:

• Investigate the nature and maturity profile of the company’s current liabilities to assess immediate liquidity pressures.
• Review cash flow statements and any available management accounts to understand operational cash generation or reliance on external financing.
• Evaluate the business model viability in the motor vehicle maintenance sector given the small scale and negative equity position.
• Confirm whether there are any related party loans or director advances that might mitigate liquidity issues.
• Assess any contingent liabilities or off-balance sheet exposures that could exacerbate financial risk.