Company Number: 12448571

Analysis Date: 2025-07-20 15:58 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, as evidenced by large negative net current assets and shareholders' funds. The substantial and persistent deficit position suggests financial distress.

2. Key Concerns:

• Severe Negative Net Current Assets: At year-end 2024, net current assets stand at approximately -£110k, indicating current liabilities far exceed current assets, posing immediate liquidity challenges.
• Large Shareholders' Deficit: Shareholders' funds are deeply negative (£-110k in 2024 and worsening from previous years), reflecting accumulated losses and erosion of equity capital.
• High Current Liabilities Relative to Assets: Current liabilities remain substantial (~£111k) compared to minimal fixed assets (~£196) and low cash balances (£155), suggesting inability to cover short-term obligations without additional financing.

3. Positive Indicators:

• Recent Share Capital Injection: A share capital increase with a premium of £124,961 during the 2024 financial year provides some fresh equity, which may support short-term operations.
• No Overdue Filings: The company is compliant with filing deadlines for accounts and confirmation statements, indicating sound regulatory compliance.
• Going Concern Statement: Directors state a belief in raising funds if required and manage overheads according to funding availability, showing some operational prudence.

4. Due Diligence Notes:

• Investigate the nature and terms of the "Other creditors" amounting to £88k to understand repayment obligations and potential restructuring.
• Review cash flow statements and funding sources to assess the company’s ability to meet ongoing liabilities and operational expenses.
• Examine the directors' plans and any contingent liabilities or off-balance-sheet commitments that may impact solvency.
• Clarify the identity and influence of shareholders or investors behind the recent share premium injection and their commitment to future funding.
• Confirm absence of director disqualifications or related party transactions that could affect governance or risk profile.