Company Number: 13636248

Analysis Date: 2025-07-29 17:39 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in its financial position in the latest year, with net current liabilities of £4,138 and net negative shareholders’ funds of £4,318. This indicates solvency concerns and potential inability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets: The company moved from small positive net assets (£15) in previous years to a net liability position in 2024, signaling erosion of equity and possible financial distress.
• Working Capital Deficit: Current liabilities (£17,871) exceed current assets (£7,281) markedly, indicating liquidity issues and potential cash flow constraints.
• Limited Scale and Resources: As a micro-entity with only one employee (the director), the company may lack operational resilience and capacity to absorb financial shocks.

3. Positive Indicators:

• Compliance with Filings: The company’s accounts and confirmation statements are up to date with no overdue filings, suggesting good regulatory compliance.
• Consistent Business Activity: Operating since 2021 in IT consultancy (SIC 62020), with ongoing activity and no indication of dormant status or administration.
• Small Entity Reporting: Use of micro-entity accounts reduces administrative burden and costs, appropriate for its scale.

4. Due Diligence Notes:

• Examine Reasons for Financial Decline: Investigate the factors driving the sharp drop in net assets and working capital deficit in 2024, including revenue, expenses, and debtor collectability.
• Cash Flow Analysis: Review cash flow statements or bank records if available to assess liquidity management and whether the company can meet immediate obligations.
• Director and Governance Review: Confirm the background and capacity of the sole director, including any potential related party transactions or personal guarantees.
• Future Financial Projections: Request management forecasts or plans that address the current negative equity situation and intended recovery strategies.