Company Number: 12819148

Analysis Date: 2025-07-20 12:02 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with persistent negative net current assets and high current liabilities exceeding current assets by a large margin. Although the net assets improved to a positive figure in 2024, this is largely driven by a substantial increase in fixed assets, financed possibly by increased liabilities, raising concerns on cash flow and operational stability.

2. Key Concerns:

• Negative Net Current Assets: The company has reported net current liabilities of £219,713 in 2024, worsening from previous years, indicating potential difficulties in meeting short-term obligations.
• Increasing Current Liabilities: Current liabilities increased markedly from £328,788 in 2023 to £455,268 in 2024, including a new finance lease/hire purchase obligation of £72,210, which may strain cash resources.
• Limited Share Capital and Equity Cushion: Share capital is nominal (£1), and shareholders’ funds have only recently turned positive (£22,421), suggesting limited equity buffer against operational risks and creditor claims.

3. Positive Indicators:

• Turnaround in Net Assets: The company moved from negative net assets of (£22,758) in 2023 to positive £22,421 in 2024, indicating some improvement in overall financial position.
• Stable Workforce: The average number of employees remained constant at 38, implying operational continuity.
• Timely Filings: Accounts and confirmation statements are up to date and not overdue, reflecting regulatory compliance.

4. Due Diligence Notes:

• Investigate nature and terms of new fixed asset additions (£250,000 computer equipment) and associated finance leases to understand their impact on cash flows and debt servicing.
• Review debtor quality and ageing, especially since trade debtors decreased but remain substantial (£158,414), to assess collection risk and working capital efficiency.
• Assess cash flow statements (not provided) and profitability trends to determine if operational cash generation can support increased liabilities.
• Clarify ownership and control inconsistencies in PSC filings, as two individuals are reported with 75-100% share ownership, potentially indicating recent or complex ownership restructuring.