Company Number: 12832808

Analysis Date: 2025-07-20 11:23 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net assets and shareholder funds, indicating some solvency; however, the significant increase in current liabilities leading to a substantial negative net current asset position in 2024 raises concerns about liquidity and short-term financial stability.

2. Key Concerns:

• Negative Net Current Assets in 2024: Net current liabilities of £15,594 at year-end suggest potential short-term liquidity pressures, which could impair the company’s ability to meet immediate obligations.
• Sharp Increase in Current Liabilities: Current liabilities rose markedly from £34,561 in 2023 to £50,387 in 2024, largely due to "other creditors," warranting scrutiny of the nature and terms of these liabilities.
• Substantial Capital Expenditure: Fixed assets increased from £13,073 to £34,939, driven by significant additions to plant, machinery, and motor vehicles, which could impact cash flow and require operational justification.

3. Positive Indicators:

• Consistent Shareholders’ Funds Growth: Net assets and shareholders’ funds grew from £13,871 in 2023 to £19,345 in 2024, reflecting retained earnings accumulation.
• Healthy Cash Balances: Despite the rise in liabilities, cash at bank remains relatively strong at £32,396, suggesting some liquidity cushion.
• Timely Filings and Compliance: The company is active, has no overdue accounts or confirmation statements, and maintains good regulatory compliance.
• Stable Ownership and Management: Two directors with clear control and no noted disqualifications, with occupations suggesting diverse expertise.

4. Due Diligence Notes:

• Examine Composition of Current Liabilities: Clarify the nature, maturity, and payment terms of the large increase in "other creditors" to assess liquidity risk.
• Assess Cash Flow Generation: Review detailed cash flow statements and operational performance to confirm the company’s ability to service liabilities and sustain capital expenditure.
• Evaluate Capital Expenditure Impact: Investigate the rationale and financing of the substantial investment in fixed assets to ensure it aligns with business strategy and revenue growth.
• Review Profit and Loss Data: Although exempt from audit and not filed, access to profit and loss details would be crucial to judge operational sustainability and profitability trends.