Company Number: 14061429

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

1. Risk Rating: HIGH
   The company demonstrates a negative net asset position as of the latest accounts (Nov 2024), indicating insolvency on a balance sheet basis. The working capital is negative, and there is a notable decline in fixed assets due to disposals. These factors combined with the short operating history raise significant risk concerns.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net assets fell from a positive £185 in April 2024 to a negative £1,220 by November 2024, suggesting erosion of equity and potential insolvency risks.
• Declining Working Capital: Current liabilities exceed current assets (£11,455 liabilities vs. £10,235 assets), signaling liquidity pressure and challenges meeting short-term obligations.
• Disposal of Fixed Assets: The complete disposal of tangible fixed assets between April and November 2024 may indicate distress or a shift away from capital-intensive operations, raising questions about operational stability and future earning capacity.

3. Positive Indicators:

• No Overdue Filings: Both annual accounts and confirmation statement filings are up to date, evidencing regulatory compliance and governance discipline.
• Active Status and Continuity of Director: The company remains active with a continuing director who is also the significant control party, suggesting continuity in management.
• Small Workforce and Turnover Threshold: The company qualifies as a small entity under UK accounting standards and benefits from simplified reporting and exemption from audit, which could reduce administrative costs.

4. Due Diligence Notes:

• Investigate the rationale and impact behind the disposal of all fixed assets during the reporting period, including whether this was a strategic decision or forced by liquidity constraints.
• Review cash flow statements or management accounts if available to assess actual liquidity trends and operational cash generation beyond balance sheet snapshots.
• Evaluate director loans and their terms, as these represent a material portion of current liabilities and may indicate reliance on related party financing.
• Ascertain the company’s turnover, profitability trends, and contract pipeline as these are not disclosed but critical for assessing operational sustainability.