Company Number: 13149969

Analysis Date: 2025-07-19 12:42 UTC

1. Risk Rating: MEDIUM
   The company shows persistent net current liabilities and a negative working capital position over multiple years, indicating liquidity constraints. However, positive net assets and shareholder funds mitigate immediate solvency concerns. The company is small, with minimal employees and limited fixed assets. No overdue filings or regulatory issues are noted, but operational scale and cash flow stability warrant caution.

2. Key Concerns:

• Negative Net Current Assets: For the past three years, net current assets have been significantly negative (approx. -£1,700 to -£2,100), suggesting challenges covering short-term liabilities.
• Low Cash Balances: Cash on hand remains very low (~£350), which may impede meeting obligations or funding operations without external support.
• Dependence on Director Loan: The presence of a director’s account creditor (£254 in 2024) may indicate reliance on director financing to support liquidity.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: Despite liquidity issues, net assets stand at £5,153 in 2024, reflecting some capital buffer.
• No Overdue Statutory Filings: Accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements.
• Stable Ownership and Management: Single director and 75-100% owner provides clear governance and control, which can facilitate decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account to understand reliance and repayment expectations.
• Review cash flow statements (if available) to assess operational cash generation or reliance on external funding.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not disclosed in the filleted accounts.
• Assess customer base and revenue trends, considering the intangible assets (goodwill) amortisation and its impact on profitability.
• Consider the impact of small size and single employee on operational resilience and growth prospects.