Company Number: 12808290

Analysis Date: 2025-07-20 11:52 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with persistent negative net current assets and extremely tight equity levels. The minimal share capital and low shareholder funds further elevate the risk profile.

2. Key Concerns:

• Severe Negative Working Capital: Current liabilities (~£141k) vastly exceed current assets (£-113 in 2024), resulting in net current liabilities of £141,142, indicating potential difficulties in meeting short-term obligations.
• Minimal Shareholders’ Funds: Equity has declined sharply from £4,166 in 2023 to £377 in 2024, signaling erosion of net assets and limited financial buffer against losses.
• Dependence on Fixed Assets: The company holds fixed assets of approximately £143k, but given the liquidity shortfall, these may not be readily convertible to cash to cover liabilities or operational needs.

3. Positive Indicators:

• Timely Filing and Compliance: The company is up to date with its accounts and confirmation statement filings, reflecting good regulatory compliance.
• Consistent Management: Directors have been stable since incorporation with no indication of disqualification or governance issues.
• Micro Entity Status: Being a micro entity reduces administrative burden and cost, which may suit the company’s current scale.

4. Due Diligence Notes:

• Examine Cash Flow and Creditor Terms: Investigate how the company manages cash flow given the severe working capital deficit and whether creditor arrangements or payment deferrals exist.
• Review Fixed Asset Valuation and Liquidity: Confirm the nature of fixed assets and their realizable value in distressed scenarios.
• Assess Business Model and Revenue Streams: Limited financial data restricts insight into operational sustainability; further information on contracts, pipeline, and profitability is necessary.
• Evaluate Director and Shareholder Support: Given low equity, investigate whether directors or shareholders have provided financial support or guarantees to sustain operations.
• Check Recent Trading Performance: Since the accounts are filleted and unaudited, additional management accounts or bank statements would clarify current trading and liquidity status.