Company Number: 12834300

Analysis Date: 2025-07-19 12:34 UTC

1. Risk Rating: HIGH
   The company shows significant financial distress with deep negative net assets and working capital deficits as of the latest accounts. The large increase in current liabilities and overall net liabilities indicates serious solvency and liquidity concerns.

2. Key Concerns:

• Severe Negative Net Assets: Shareholders' funds have deteriorated from positive £4,838 (2023) to negative £44,610 (2024), signaling accumulated losses and insolvency risk.
• Substantial Increase in Current Liabilities: Current liabilities jumped from £2,990 to £39,533, creating a large net current liability position of -£38,519, indicating cash flow strain and potential inability to meet short-term obligations.
• Emergence of Long-Term Debt: Introduction of loans falling due after one year totaling £9,800 adds to financial burden and debt servicing risks for a company already experiencing losses.

3. Positive Indicators:

• Active Status and Recent Filings: The company is active, with up-to-date accounts and confirmation statement filings, showing compliance with statutory requirements.
• Experienced Director in Relevant Industry: The sole director is an electrical engineer owning 75-100% of shares, suggesting aligned management control and industry knowledge.
• Modest Tangible Fixed Assets: The company maintains some tangible assets (motor vehicles valued at £3,710), which may support operational capacity.

4. Due Diligence Notes:

• Review detailed profit and loss information to understand the causes of the £49,447 deficit in the latest year and the sustainability of operations.
• Investigate the nature and terms of the new long-term loans and accrued expenses, particularly the large accrued expenses of £31,572, to assess repayment obligations and creditor relationships.
• Assess cash flow statements and any available forecasts to evaluate the company’s ability to finance ongoing operations and service debt.
• Consider director and related-party transactions, given the director’s substantial control and existence of directors’ current accounts liabilities.
• Confirm absence of any insolvency proceedings or director disqualifications not apparent from the data.