Company Number: 14338899

Analysis Date: 2025-07-20 11:03 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent negative net current assets and shareholders' funds, indicating ongoing solvency challenges. The balance sheet reflects net liabilities increasing from £-11,665 in 2023 to £-4,380 in 2024, still significantly negative. Current liabilities exceed current assets in both years, suggesting liquidity risk. The company is very small, with minimal fixed assets and only one employee, raising concerns about operational scale and sustainability.

2. Key Concerns:

• Solvency Risk: Negative net assets and shareholders’ funds indicate the company is technically insolvent, reliant on director loans and external support to meet obligations.
• Liquidity Concerns: Current liabilities exceed current assets (£15,724 vs £10,802 in 2024), implying potential cash flow constraints. The company depends heavily on director loans (£9,673 in 2024) to cover short-term liabilities.
• Operational Stability: With only one employee and limited tangible assets, the business appears fragile. The small scale and continued losses (accumulated deficit in profit and loss account) raise questions about sustainability without additional capital or improved trading performance.

3. Positive Indicators:

• Filing Compliance: The company is up to date with annual accounts and confirmation statements, indicating good regulatory compliance.
• Director Support: The presence of director loans suggests a willingness by management to support the company financially, which may provide a buffer in the short term.
• Improvement Trend: Some improvement in net current liabilities from £-12,388 in 2023 to £-4,922 in 2024, showing potential progress in managing working capital.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans to assess their sustainability and likelihood of repayment or conversion.
• Review cash flow projections and trading performance to understand prospects for reversing negative equity and achieving profitability.
• Clarify the business model and client base given the "management consultancy activities other than financial management" classification to evaluate revenue sustainability.
• Check for any contingent liabilities or off-balance sheet commitments not reflected in the accounts.
• Confirm whether there are any plans for capital injection or restructuring to improve financial position.