Company Number: 13155962

Analysis Date: 2025-07-20 17:38 UTC

1. Risk Rating: HIGH
   The company exhibits a highly leveraged balance sheet with net assets of only £261 against significant long-term creditors of £586,140. Such a financial position indicates potential solvency risk despite positive net current assets.

2. Key Concerns:

• High Long-Term Liabilities: Creditors falling due after one year amount to £586,140, which far exceeds the net assets and shareholder funds, suggesting heavy indebtedness that could impair financial stability.
• Minimal Equity Base: Shareholders’ funds stand at only £261, which is negligible relative to liabilities and may limit the company’s ability to absorb losses or secure financing.
• Single Director and Employee: The company has one director and one employee, indicating limited operational capacity and potential dependence on a single individual, raising operational risk.

3. Positive Indicators:

• Net Current Assets Strong: The company reports net current assets of £590,314, implying positive short-term liquidity and an ability to meet immediate obligations.
• Timely Filing and Compliance: All statutory filings, including accounts and confirmation statements, are up to date and not overdue, indicating good governance and regulatory compliance.
• Ownership Concentration: The sole director and 75-100% shareholder is consistent, which may facilitate streamlined decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the substantial long-term creditors to assess repayment schedules, covenants, and potential refinancing risks.
• Review cash flow statements and projections (if available) to evaluate liquidity sustainability beyond the balance sheet snapshot.
• Confirm the operational business model and revenue streams given the micro-entity status and limited staffing, to assess ongoing viability.
• Assess the director’s experience and capacity to manage liabilities and operational demands.
• Clarify why net current assets are significantly higher than total net assets, focusing on classification and potential off-balance sheet obligations.