Company Number: 13658757

Analysis Date: 2025-07-20 19:04 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant liquidity risk with net current liabilities consistently exceeding £245k over recent years, indicating its inability to cover short-term obligations from current assets. Although net assets are positive but minimal, this reflects very thin equity buffers. The micro-entity scale and lack of employees also suggest limited operational capacity and revenue generation.

2. Key Concerns:

• Persistent negative working capital: Current liabilities (~£500k) exceed current assets (~£255k) by nearly double, posing solvency risk in the short term.
• Minimal net assets and shareholder funds (£5,433 in 2024), raising questions about financial resilience.
• Absence of profit and loss data and no audit or detailed financial disclosures limit transparency on operational performance and cash flow generation.

3. Positive Indicators:

• The company holds substantial fixed assets (~£252k), likely real estate per SIC code 68100, which may represent collateral or underlying value.
• Directors have maintained timely filing compliance with no overdue accounts or confirmation statements.
• Established ownership and control by experienced individuals with clear PSC disclosures, indicating governance transparency.

4. Due Diligence Notes:

• Obtain full profit and loss statements and cash flow data to assess operational sustainability and real cash generation.
• Verify the nature and marketability of fixed assets to understand their liquidity and potential to support debt obligations.
• Investigate creditor composition and payment terms to evaluate short-term funding pressures.
• Review any off-balance-sheet liabilities or contingent risks not reflected in filings.
• Assess directors’ plans to address working capital deficits and long-term business viability.