Company Number: 12503660

Analysis Date: 2025-07-29 18:12 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net liabilities increasing over the years and a highly negative working capital position. The fixed assets are substantial but appear illiquid relative to current liabilities, suggesting difficulty in meeting short-term obligations.

2. Key Concerns:

• Persistent negative net assets and shareholders’ funds, worsening from -£4,263 in 2020 to -£9,097 in 2024, indicating accumulated losses and erosion of equity.
• Extremely negative net current assets (~-£473k in 2024) due to current liabilities vastly exceeding current assets, reflecting poor liquidity and potential cash flow distress.
• Lack of profitability data and absence of an audit or detailed profit and loss disclosure limit insight into operational performance and sustainability.

3. Positive Indicators:

• The company maintains a consistent fixed asset base (£464,774), which could provide some collateral value.
• No overdue filings or compliance issues are evident; accounts and confirmation statements are up to date, suggesting sound governance in terms of statutory obligations.
• The company has a stable director structure with two directors appointed at incorporation and remaining current.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets to assess realizable value and whether they can be leveraged or sold to improve liquidity.
• Review detailed management accounts and cash flow statements to understand operational cash generation and future viability.
• Clarify the absence of a profit and loss account filing and request any internal financial reports to evaluate operational performance.
• Verify whether there are any contingent liabilities or related party transactions not disclosed in the limited accounts.
• Confirm the directors’ plans or strategies to address the negative equity and liquidity issues.