Company Number: 12581804

Analysis Date: 2025-07-20 16:07 UTC

1. Risk Rating: HIGH
   The company demonstrates persistent and increasing net liabilities and negative net current assets over recent years, indicating significant solvency and liquidity challenges.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net assets deteriorated from a modest positive £393 in 2020 to a negative £44,072 in 2024, reflecting accumulated losses eroding equity.
• Working Capital Deficit: Current liabilities substantially exceed current assets (£72,297 vs. £125,738 in 2024), resulting in a large net current liability position (-£53,441), which raises red flags on the ability to meet short-term obligations.
• Increasing Creditors: The sharp rise in creditors due within one year from £37,587 in 2021 to £125,738 in 2024 suggests escalating payables or borrowing, potentially straining liquidity and supplier relationships.

3. Positive Indicators:

• Active Trading Status and Compliance: The company is active, with no overdue filings for accounts or confirmation statements, indicating compliance with statutory requirements.
• Experienced Single Director and PSC: Mr David Richard Bide has been a consistent director and controlling shareholder since incorporation, which may provide operational continuity and commitment.
• Small Employee Base with Controlled Costs: The company employs an average of 3 people, which may help limit overheads in a niche manufacturing and sales sector.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to assess the risk of default or restructuring needs.
• Review cash flow statements (if available) to confirm liquidity trends and operating cash generation or burn.
• Understand reasons behind the significant increase in creditors and whether these are trade payables, loans, or other financial obligations.
• Assess the company’s business model sustainability and market position within the motorcycle manufacture and sales sector given persistent losses.
• Confirm no contingent liabilities or regulatory issues unreported in the accounts.
• Verify the absence of director misconduct or disqualification records for Mr Bide, given sole control.