Company Number: 14074094

Analysis Date: 2025-07-20 17:39 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity and solvency concerns, evidenced by persistent negative net current assets and reliance on director loans. The limited asset base and negative working capital raise concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: The company has a net current liabilities position of approximately £9,982 as of April 2024, improving slightly from £13,354 the previous year but still indicating liquidity strain.
• Dependence on Director Loans: A director loan balance of over £10,700 is outstanding and interest-free, repayable on demand. This suggests reliance on related-party funding to support operations.
• Limited Asset Base and Small Scale: Total fixed assets are modest (£13,000) and shareholders’ funds remain low (~£3,000). The company has only three employees and is classified as a small entity, which may limit operational resilience.

3. Positive Indicators:

• Timely Filings and Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance.
• Stable Shareholder Structure: Ownership is clearly defined with three persons holding significant control, which may aid governance stability.
• Improving Liquidity Trend: Although still negative, net current liabilities have decreased from prior years, suggesting some improvement in working capital management.

4. Due Diligence Notes:

• Review the company’s cash flow forecasts to assess how it plans to resolve liquidity shortfalls and repay director loans.
• Investigate the nature of “other creditors” (£14,571) to understand payment terms and potential contingent liabilities.
• Examine the business model and revenue streams given the SIC code (amusement and recreation activities) to evaluate operational sustainability and market prospects.
• Confirm whether there are any contingent liabilities, pending litigations, or regulatory issues not disclosed in the filings.
• Assess the impact of director changes in early 2025 on strategic direction and financial management.