Company Number: 13226478

Analysis Date: 2025-07-20 18:46 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, evidenced by negative net current assets and consecutive losses over recent years. The continued decline in net assets and low turnover relative to liabilities increase financial risk.

2. Key Concerns:

• Negative Working Capital: Net current liabilities have grown from £4,158 in 2023 to £11,153 in 2024, indicating cash flow stress and potential difficulty in meeting short-term obligations.
• Consistent Losses: The company recorded losses of £10,978 in 2024 and £17,561 in 2023 despite modest turnover, reducing equity and undermining financial stability.
• Declining Net Assets: Shareholders’ funds dropped from £17,970 in 2023 to £6,992 in 2024, signifying erosion of capital and increased insolvency risk.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with filing deadlines for both accounts and confirmation statements, mitigating regulatory risk.
• No Indication of Director Issues: The sole director is current with no public record of disqualification or governance concerns.
• Micro-Entity Classification: The company benefits from simplified reporting requirements, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the nature of current liabilities to assess urgency and creditor composition.
• Review cash flow statements or bank statements (not provided) to confirm liquidity position and operational cash generation.
• Understand business strategy and plans to reverse losses and improve working capital.
• Confirm absence of contingent liabilities or off-balance sheet risks beyond those disclosed.