Company Number: 14210768

Analysis Date: 2025-07-29 13:13 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by persistent and large negative net current assets and net liabilities. The financial position deteriorated from a net liability of £444 in 2023 to £9,172 in 2024, indicating worsening financial health within a relatively short operating history.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£65,854) substantially exceed its current assets (£11,572), resulting in a net current liability position of £54,282 at the year end. This suggests short-term liquidity issues and potential difficulties meeting obligations as they fall due.
• Persistent Net Liabilities and Negative Shareholders’ Funds: The company’s negative net assets and shareholders’ funds highlight that liabilities exceed assets, which raises concerns about its ability to sustain operations without additional capital injection or profitability improvement.
• Limited Operating History and Small Scale: Incorporated in mid-2022, the company has only two years of financial data, showing a worsening financial position. The small scale and limited turnover data (not disclosed but implied by exemption from audit and filing category) limit visibility on operational viability and revenue generation.

3. Positive Indicators:

• Asset Growth: Fixed assets (motor vehicles) increased from £25,000 to £45,110, indicating investment in operational capacity, which aligns with its SIC classification in freight transport by road.
• No Overdue Filings: The company is up to date with both accounts and confirmation statement filings, suggesting compliance with statutory requirements and good governance on administrative matters.
• Ownership and Control: The controlling shareholder/director holds 75-100% of shares and voting rights, ensuring clear decision-making authority, which may facilitate swift strategic responses.

4. Due Diligence Notes:

• Investigate the company’s cash flow projections and working capital management plans to assess how it intends to address the significant current liabilities and negative working capital.
• Review customer contracts and revenue streams to ascertain the reliability and sustainability of turnover and the likelihood of debtor collection given the large VAT debtor balance.
• Confirm any off-balance sheet obligations or contingent liabilities that may exacerbate financial risks.
• Assess the directors’ plans for capital infusion or restructuring given the negative equity position.
• Evaluate the impact of motor vehicle asset depreciation and utilization on operational efficiency and cost structure.