Company Number: 13106691

Analysis Date: 2025-07-20 12:12 UTC

1. Risk Rating: HIGH
   The company shows a negative net current asset position and negative shareholder funds as of the latest financial year end (31 March 2024), indicating potential solvency and liquidity risks.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£23,550) exceed current assets (£20,994) resulting in a net current liability of £2,556, which suggests short-term liquidity pressures.
• Negative Shareholders’ Funds: The company’s equity is negative (£-2,556), implying accumulated losses or depletion of capital reserves that may threaten long-term solvency.
• Decline From Previous Positive Position: The prior financial years (2020-2022) showed positive net current assets and shareholders’ funds, indicating a recent and significant deterioration in financial health that warrants scrutiny.

3. Positive Indicators:

• Current Status and Compliance: The company is active with no overdue filings, demonstrating regulatory compliance and current operational status.
• Stable Employee Base: The average number of employees remained stable at 12, suggesting operational continuity despite financial challenges.
• Established Operations: Operating since 2020 and classified as a micro-entity, the company appears to be managing its administrative and reporting obligations effectively.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net current assets and shareholders’ funds in the latest period, including any one-off charges, operational losses, or increased liabilities.
• Review cash flow statements and creditor payment terms to assess immediate liquidity risks and the company’s ability to meet short-term obligations.
• Examine any contingent liabilities or off-balance-sheet exposures that may not be reflected in the micro-entity filings.
• Confirm no director disqualifications or legal actions that could impact governance and operational stability.
• Validate whether the company has adequate financing arrangements or plans to restore capital adequacy.