Company Number: 13632967

Analysis Date: 2025-07-29 16:57 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity risk with current liabilities far exceeding current assets, resulting in substantial negative net current assets. This imbalance raises serious concerns regarding the company's ability to meet short-term obligations.

2. Key Concerns:

• Liquidity Deficit: Current liabilities (£595,399) greatly outweigh current assets (£35,836) as of 30 September 2023, creating a net current liabilities position of £559,563 which indicates potential cash flow stress.
• Reliance on Long-Term Assets: The company has a large amount of tangible fixed assets (£576,685) relative to total equity (£17,122), which may not be readily convertible to cash to cover short-term debts.
• Negative Working Capital Trend: The net current liabilities increased from £372,126 in 2022 to £559,563 in 2023, reflecting worsening short-term financial health.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with statutory filing deadlines for accounts and confirmation statements, suggesting good governance on regulatory compliance.
• Active Status and Single Director Control: The company is active with a single director and 75-100% shareholder, which may enable swift decision-making and operational control.
• Asset Growth: Tangible fixed assets increased significantly from £383,204 in 2022 to £576,685 in 2023, indicating capital investment or asset acquisition potentially supporting future business operations.

4. Due Diligence Notes:

• Investigate the nature and terms of the "other creditors" amounting to £531,910 to understand whether these are trade payables, loans, or related party transactions and their repayment schedules.
• Review cash flow statements or management accounts (not provided) to assess operating cash flow and the company's ability to service short-term liabilities.
• Clarify the business model sustainability given no reported employees and the nature of fixed assets, confirming how revenue is generated and if the asset base is generating adequate returns.
• Assess any contingent liabilities or off-balance sheet risks not evident in current filings.