Company Number: 14469877

Analysis Date: 2025-07-20 13:11 UTC

1. Risk Rating: HIGH
   The company shows significant net liabilities, negative working capital, and reliance on director loans and hire purchase agreements, indicating elevated solvency and liquidity risks for an investor.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company reports net liabilities of £6,220 and negative equity of £6,520, which suggests the business is currently insolvent on a balance sheet basis.
• Negative Net Current Assets (Working Capital Deficit): Current liabilities (£32,090) exceed current assets (£7,656) by £24,434, indicating potential liquidity issues to meet short-term obligations.
• Dependence on Director Loans and Hire Purchase Debt: £23,764 director loan and £23,644 total hire purchase debt (split between current and non-current) indicate external funding reliance, increasing financial risk, especially if cash flow is insufficient.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with statutory accounts and confirmation statement filings, indicating sound compliance discipline.
• Tangible Fixed Assets Base: The company has tangible fixed assets (plant and machinery) valued at £34,998 net of depreciation, which may be leveraged or sold if needed.
• Founding Directors with Significant Control: Two directors own 25-50% shares each, suggesting stable ownership and management continuity.

4. Due Diligence Notes:

• Examine Cash Flow Statements and Profit & Loss Details: These are absent from the accounts; understanding operational cash generation and profitability is crucial to assess sustainability.
• Clarify Terms and Repayment Plans for Director Loans and Hire Purchases: Assess whether these obligations are manageable and the risk of default or forced asset disposals.
• Review Contract Backlog, Customer Base, and Market Position: To evaluate the company’s ability to generate future revenues and improve financial position.
• Assess Directors’ Experience and Past Conduct: While no disqualifications are noted, understanding their track record in managing financial distress would be prudent.
• Investigate Related Party Transactions: £6,000 debtor balance from a connected company should be reviewed for collectability and terms.

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