Company Number: 12839265

Analysis Date: 2025-07-19 12:24 UTC

1. Risk Rating: HIGH

Justification: The company exhibits a significant deterioration in liquidity, evidenced by net current liabilities of £8,029 at the latest year end (2024), compared to net current assets of £6,461 in the prior year. Current liabilities have nearly doubled from £20,414 to £39,136, with a substantial increase in taxation and social security creditors (from £18,351 to £36,752), suggesting potential cash flow management issues. Furthermore, shareholders' funds have declined sharply from £28,359 to £9,322, indicating erosion of equity and possibly ongoing losses. The company is small with minimal share capital (£1) and only one employee (the director), which may limit operational resilience.

2. Key Concerns:

• Liquidity strain: Negative net current assets due to rising short-term liabilities, especially tax and social security, could threaten ability to meet immediate obligations.
• Declining equity: Substantial reduction in shareholders' funds over two years points to financial stress or losses.
• Limited operational scale: Single-employee structure and small asset base may restrict business sustainability and capacity to recover.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, indicating adherence to regulatory requirements.
• Active status: Company remains active and not in liquidation or administration.
• Cash balance: Despite liquidity issues, cash at bank increased from £16,492 to £23,487, which could provide some short-term buffer.

4. Due Diligence Notes:

• Investigate reasons behind the sharp increase in current liabilities, especially tax and social security creditors—confirm if these are disputed amounts or deferred payments.
• Review recent profit and loss accounts (not filed with current documents) to assess operational profitability and cash flow trends.
• Assess the company's business model and client base given the SIC classification (IT services) and single-employee setup.
• Explore any contingent liabilities or off-balance sheet obligations not disclosed.
• Confirm the status and recovery prospects of debtors, noting a decrease from £10,383 to £7,620.