Company Number: 13115315

Analysis Date: 2025-07-20 13:01 UTC

1. Risk Rating: HIGH
   The company exhibits negative net current assets and shareholders' funds, with liabilities exceeding current assets consistently over recent years. This suggests solvency and liquidity risks that may impair its ability to meet short-term obligations.

2. Key Concerns:

• Negative Working Capital: The company reported net current liabilities of £62,219 as of 31 December 2023, worsening from prior years, indicating potential cash flow and liquidity stress.
• Negative Shareholders' Funds: The equity position is negative (£62,319 in 2023), reflecting accumulated losses or funding gaps, which undermines financial stability.
• Intercompany Debtor Concentration: Debtors largely consist of amounts owed by group undertakings (£5.16M), raising questions about the collectability and operational independence; reliance on related parties could conceal underlying cash flow weaknesses.

3. Positive Indicators:

• Timely Filings: No overdue accounts or confirmation statements, indicating compliance with statutory requirements and good governance on reporting.
• Single Director and PSC: Clear control structure with one director and sole person with significant control, simplifying accountability and decision-making.
• Incremental Asset Growth: Current assets and debtors have increased year on year, suggesting some business expansion or operational scaling.

4. Due Diligence Notes:

• Verify the nature and recoverability of the intercompany debtor balances to assess real liquidity.
• Investigate reasons behind persistent negative equity and working capital to understand operational sustainability and potential solvency issues.
• Assess whether there are contingent liabilities or off-balance-sheet obligations not disclosed that could worsen financial position.
• Confirm the absence of any director conduct issues or regulatory actions given the single director structure.
• Review cash flow statements if available to better gauge cash management and timing of creditor payments.