Company Number: 13917169

Analysis Date: 2025-07-29 18:01 UTC

1. Risk Rating: HIGH
   The company shows significant solvency concerns evidenced by net liabilities in the latest accounts, a very high level of long-term creditors relative to assets, and a negative net asset base which signals financial distress.

2. Key Concerns:

• Negative Net Assets: As of 28 February 2025, net assets are negative (£36,070), indicating liabilities exceed assets, which threatens solvency.
• Heavy Long-Term Debt: Creditors falling due after more than one year stand at £382,606, surpassing total assets, raising risk of default or restructuring.
• Minimal Liquidity: Current assets (£7,037) are vastly outweighed by current liabilities (£400), but the reported net current assets appear inconsistent in the accounts document (possible data error), warranting further scrutiny of cash flow and working capital adequacy.

3. Positive Indicators:

• Active Status and Timely Filings: The company is active with no overdue filings, indicating compliance with statutory obligations and governance.
• Increasing Fixed Assets: Fixed assets increased from £198,515 in 2024 to £339,899 in 2025, suggesting ongoing investment or asset acquisition.
• Shareholder Control Stability: The major shareholder owns 75-100% of shares and voting rights, providing clear control and potentially easier decision-making.

4. Due Diligence Notes:

• Verify Accuracy of Current Assets/Liabilities Figures: The accounts show an unusual figure of creditors within one year as -£400 in 2025, inconsistent with prior years and financial logic; detailed ledger review is needed.
• Assess Nature and Terms of Long-Term Creditors: Understanding the composition, maturity profile, and covenants of the £382,606 long-term liabilities is critical to assessing solvency risk.
• Review Cash Flow Statements and Profitability: As micro-entity accounts provide limited data, request management accounts or cash flow statements to evaluate liquidity and operational cash generation.
• Consider Director and Shareholder Background Checks: While no disqualifications are noted, given financial stress, further checks on directors’ capacity to manage turnaround should be conducted.