Company Number: 14281948

Analysis Date: 2025-07-29 20:25 UTC

1. Risk Rating: HIGH
   The company exhibits negative working capital for multiple years, minimal net asset value, and ongoing director loans increasing without repayment, indicating financial distress and high solvency risk.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities exceed current assets by £1,146 as of August 2024, worsening from previous years, signaling liquidity issues.
• Minimal Net Asset Base: Shareholders' funds are only £21, up from a negative figure, but still negligible and insufficient as a cushion against losses or creditor claims.
• Director Loans Increasing: The director’s outstanding advances rose from £4,660 to £10,738 in one year with no repayments, suggesting reliance on informal funding, which may not be sustainable or legally enforceable.

3. Positive Indicators:

• Timely Filing and Compliance: The company is active with no overdue statutory filings or accounts, indicating good regulatory compliance.
• Clear Ownership and Control: One director/PSC controls 75-100% of shares and voting rights, simplifying governance and decision-making.
• Micro-Entity Status: Simplified reporting reduces compliance costs, appropriate for the company size.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans, including any formal agreements and the director’s ability to continue funding.
• Review cash flow forecasts and bank statements to assess short-term liquidity and ability to meet obligations as they fall due.
• Confirm operational status and revenue streams, as no employees are reported and the sector is cleaning services, which often relies on labor.
• Assess risks related to the director’s occupation and capacity to sustain the business financially and operationally.