Company Number: 12583468

Analysis Date: 2025-07-20 14:48 UTC

1. Risk Rating: HIGH

Justification: The company exhibits significant liquidity strain as evidenced by its heavily negative net current assets and reliance on director loans with increasing current liabilities. The minimal shareholder equity and very limited cash reserves relative to short-term debts pose a substantial solvency risk.

2. Key Concerns:

• Severe Negative Net Current Assets: At -£643,161 (2024), the company’s current liabilities vastly exceed its current assets, indicating potential difficulty meeting short-term obligations.
• High Director Loan Account Balance: £376,084 owed to the director as a creditor within one year suggests dependence on related-party financing, which may not be sustainable or easily repayable.
• Declining Liquidity: Cash at bank dropped sharply from £257,667 (2023) to £9,406 (2024), signaling cash flow pressures and possibly increased short-term borrowing or operational cash burn.

3. Positive Indicators:

• Stable Fixed Asset Base: The company maintains substantial fixed assets (£645,891) in property, which are not depreciated and could be leveraged or sold if needed.
• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating compliance with statutory requirements.
• Single Controlling Shareholder: A single person with full control (Mr. Benjamin Osborn) may allow for swift decision-making and operational agility.

4. Due Diligence Notes:

• Investigate terms and conditions of the director’s loan account, including repayment plans and interest rates.
• Assess the nature of current liabilities—especially bank loans and any trade creditors—to determine imminent repayment obligations.
• Review cash flow statements and projections to understand liquidity management and working capital cycle.
• Confirm the market value and liquidity of fixed assets to evaluate potential for asset-based financing or sale.
• Scrutinize the operational model and revenue streams to judge sustainability, as turnover data is not provided.
• Verify absence of regulatory or governance issues beyond filing compliance since no audit is done due to exemption.