Company Number: 14294236

Analysis Date: 2025-07-20 14:18 UTC

1. Risk Rating: HIGH
   The company exhibits a persistent negative net asset position and net current liabilities over multiple years, indicating financial distress and potential insolvency risk.

2. Key Concerns:

• Negative Net Assets: The company has net liabilities of £8,596 as of the latest accounts, consistent with previous years, suggesting ongoing capital erosion.
• Working Capital Deficit: Current liabilities significantly exceed current assets (e.g., £10,980 vs £2,384 in 2024), highlighting liquidity challenges and possible difficulties meeting short-term obligations.
• Limited Scale and Resources: Micro entity classification with only 2 average employees and minimal current assets may limit operational resilience and ability to absorb financial shocks.

3. Positive Indicators:

• Compliance: The company is up to date with filing of accounts and confirmation statements, with no overdue filings noted, reflecting regulatory compliance and good governance practices.
• Active Status and Ongoing Operation: The business is active and maintains a website with contact details, indicating ongoing commercial activity and market presence in the residential care sector.
• Experienced Control: One PSC with 25-50% ownership and voting rights suggests concentrated control which may facilitate decision-making.

4. Due Diligence Notes:

• Investigate the company's cash flow and funding sources to understand how short-term liabilities are being managed given persistent working capital deficits.
• Review management plans or restructuring initiatives aimed at restoring solvency and improving financial health.
• Assess client contracts, revenue streams, and operational performance to evaluate sustainability and growth potential in the competitive residential care market.
• Examine director backgrounds and any potential related party transactions or contingent liabilities not evident from the accounts.
• Confirm no pending enforcement or regulatory issues given the vulnerable financial position.