Company Number: 13678996

Analysis Date: 2025-07-29 16:58 UTC

1. Risk Rating: MEDIUM
   The company shows ongoing operations with timely filings and no overdue accounts or returns. However, consistent negative net current assets and reliance on a director’s loan account to cover liabilities signal liquidity stress and some solvency risk.

2. Key Concerns:

• Negative net working capital increasing from -£10,597 (2022) to -£22,947 (2023) indicates the company’s current liabilities significantly exceed current assets, raising liquidity concerns.
• High director’s loan account (£33,694 in 2023, up from £25,208 in 2022) suggests dependence on director financing to meet obligations rather than operational cash flow.
• Declining net assets from £5,262 (2021) to £2,890 (2023) reflect erosion in equity, which could affect financial stability if continued.

3. Positive Indicators:

• The company remains active with all statutory filings up to date and no indicated compliance issues.
• Fixed assets have increased significantly (£31,898 in 2023 vs £19,579 in 2022), possibly reflecting investment in operational capacity.
• Sole control by a single director/shareholder may allow for agile decision-making and strong governance continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account to assess risk and repayment prospects.
• Review recent and projected cash flow statements to understand operational liquidity and whether the company can self-sustain working capital needs.
• Assess the company’s profitability trends and contract pipeline to evaluate future earnings capacity and ability to restore equity.
• Confirm if there are any contingent liabilities or ongoing disputes not reflected in the accounts.
• Clarify if deferred tax liabilities are expected to crystallise and how this affects solvency.