Company Number: 12611604

Analysis Date: 2025-07-20 15:40 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as indicated by persistent net current liabilities and negative shareholders' funds over consecutive years. The lack of cash reserves and ongoing losses raise concerns about its ability to meet short-term obligations and sustain operations.

2. Key Concerns:

• Negative Net Current Assets and Shareholders' Funds: The company has reported net current liabilities of approximately £17,000 and negative equity of over £7,000 as of the latest accounts, reflecting ongoing financial strain.
• Minimal Cash Reserves: With only £230 in cash at year-end against current liabilities of nearly £57,000, the company faces potential cash flow challenges that could impair its ability to pay creditors promptly.
• Reliance on Loans and Related Party Funding: Significant current liabilities include £40,452 owed to group undertakings and £16,460 in director loans, suggesting dependence on related parties for financing rather than operational cash generation.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with both accounts and confirmation statement filings, indicating regulatory compliance and good governance in terms of deadlines.
• Active Website and Contact Details: Presence of an active website and clear contact information supports transparency and operational presence.
• Tangible Fixed Assets: Although modest, the company holds tangible assets valued at £9,833, which provide some asset base.

4. Due Diligence Notes:

• Interrogate the Nature and Terms of Related Party Loans: Understand repayment schedules, interest terms, and whether these loans are sustainable or subject to call.
• Assess Cash Flow Projections and Business Model Sustainability: Review management forecasts and revenue streams given the persistent negative working capital and absence of employees.
• Examine Debtors Aging and Recoverability: Debtors form the bulk of current assets; the quality and collectability of these balances require verification to assess liquidity realistically.
• Review Strategic Plans and Capital Injection Possibilities: Investigate any plans for restructuring, equity infusion, or operational changes to address accumulated losses and negative equity.