Company Number: 12827964

Analysis Date: 2025-07-20 11:42 UTC

1. Risk Rating: HIGH
   The company shows significant deterioration in its financial position, with net assets turning negative in the latest year and a very low cash/current asset balance, indicating high solvency and liquidity risk.

2. Key Concerns:

• Negative net assets of £4,034 as at 31 August 2023, down from positive net assets in prior years, signaling potential insolvency risk.
• Current assets dropped sharply to just £3 against current liabilities of £4,037, indicating severe liquidity constraints and inability to cover short-term obligations.
• Disposal of fixed assets worth £10,663 during the year with no additions suggests possible asset stripping or distress sale, which may impair operational capability.

3. Positive Indicators:

• The company remains active and up to date with both accounts and confirmation statement filings, showing compliance with statutory requirements.
• Directors have been consistent since incorporation, possibly indicating stable governance at the leadership level.
• The company has grown its employee base from 2 to 4 over the year, which may imply ongoing business operations.

4. Due Diligence Notes:

• Investigate the reason for asset disposals and whether this reflects restructuring or distress.
• Assess the company’s cash flow forecasts and plans to address the negative working capital and net asset position.
• Review any contingent liabilities or off-balance sheet obligations not apparent in micro-entity accounts.
• Confirm no director disqualifications or adverse regulatory actions have been taken against management.
• Clarify the nature and stability of the company’s contracts/customers given its SIC classification (other passenger land transport).