Company Number: 14265728

Analysis Date: 2025-07-29 12:03 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position and increasing liabilities, indicating significant solvency concerns despite being active and compliant with filings.

2. Key Concerns:

• Negative Net Assets: The net assets have deteriorated from £(3,268) in 2023 to £(19,230) in 2024, which suggests the company’s liabilities exceed its assets, a strong indicator of insolvency risk.
• Increasing Creditors and Liabilities: Current liabilities increased from £74,746 to £83,150, and the company also shows £8,079 in creditors due after more than one year, which may indicate growing debt pressures.
• Operating Scale and Profitability: The company remains very small (micro-entity) with just 2 employees, and fixed assets have decreased, possibly signaling limited operational scale and capital investment that could affect sustainability.

3. Positive Indicators:

• Compliance with Filings: No overdue accounts or confirmation statements, indicating good regulatory compliance.
• Growing Current Assets: Current assets have increased from £37,278 to £45,112, which may help with short-term liquidity if managed prudently.
• Active Status and Recent Incorporation: Incorporated in mid-2022 and still active, showing some ongoing business activity and potential for growth.

4. Due Diligence Notes:

• Clarify the composition and terms of current and long-term creditors to understand the debt structure and repayment obligations.
• Review cash flow statements or management accounts, if available, to assess operational cash generation and liquidity beyond balance sheet snapshots.
• Investigate reasons for decline in fixed assets and whether this reflects asset disposals, impairments, or lack of reinvestment.
• Confirm the nature of operations and client contracts to evaluate business sustainability in the freight transport sector.
• Assess director plans for addressing the negative net asset position and improving financial health.