Company Number: 14061440

Analysis Date: 2025-07-29 16:16 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in net assets from a positive £219 in 2023 to negative £890 in 2024, indicating financial distress. The near-zero current asset base (£434) coupled with current liabilities close in amount (£423) and negative shareholders funds signal solvency and liquidity risks.

2. Key Concerns:

• Negative net assets and shareholders funds in the latest financial year suggest insolvency risk.
• Current assets have drastically declined from £20,368 to £434, raising concerns about operational liquidity and cash flow management.
• Accruals and deferred income of £901 are significant relative to total assets, possibly reflecting deferred income or unpaid obligations that could pressure cash flow.

3. Positive Indicators:

• The company is current with all statutory filings and is not overdue on accounts or confirmation statements, indicating regulatory compliance and governance diligence.
• The business has a sole director with full control, potentially allowing quick decision-making in response to financial issues.
• The company benefits from small company audit exemptions, reducing administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature of the substantial reduction in current assets and the cause of the negative net assets—was this due to operational losses, asset write-downs, or timing issues?
• Clarify the composition and expected realization of accruals and deferred income to assess their impact on liquidity.
• Review cash flow statements and management accounts if available to evaluate ongoing operational viability beyond balance sheet snapshots.
• Confirm any contingent liabilities or off-balance sheet obligations that could further impair solvency.