Company Number: 13637477

Analysis Date: 2025-07-20 13:02 UTC

1. Risk Rating: MEDIUM
   The company shows some solvency concerns with negative net current assets and minimal net equity. However, it remains active with no overdue filings and has fixed assets supporting its balance sheet. The risk is moderate given the early stage of the company and limited financial history.

2. Key Concerns:

• Negative net current assets (£-46,669) indicate potential liquidity stress to cover short-term obligations.
• Substantial long-term creditors (£387,000) relative to equity (£9,068) suggest high leverage and financial risk.
• Very low shareholder funds and minimal working capital could impair operational flexibility and risk of insolvency if cash flow pressures arise.

3. Positive Indicators:

• Ownership and control are clearly established with two directors/shareholders actively involved, reducing governance risk.
• No overdue accounts or confirmation statement filings indicate compliance with regulatory requirements.
• Fixed assets of £442,737 provide some tangible value backing the company’s balance sheet.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities (£387,000) to assess repayment conditions and covenants.
• Review cash flow projections and operational plans to understand how the company will manage its negative working capital situation.
• Confirm the valuation and liquidity of fixed assets to determine their ability to support creditor claims if necessary.
• Examine the company’s revenue generation, client base, and contracts given limited financial history and no reported profits/losses.
• Validate the absence of director disqualifications or legal proceedings that might affect governance or operational continuity.