Company Number: 13154250

Analysis Date: 2025-07-20 16:17 UTC

1. Risk Rating: HIGH
   The company presents a significant solvency risk due to its substantial net liabilities position at the latest year-end. The dramatic increase in current liabilities, particularly short-term creditors, without a commensurate increase in current assets or cash, raises liquidity concerns.

2. Key Concerns:

• Negative Net Assets: The company moved from positive net assets of £8,071 in 2023 to a negative net asset position of £57,544 in 2024, indicating accumulated losses or increased liabilities that exceed assets.
• Severe Working Capital Deficit: Current liabilities have ballooned from £8,295 in 2023 to £82,793 in 2024, leading to net current liabilities of £60,379, which suggests the company may face cash flow difficulties meeting short-term obligations.
• Significant Increase in Creditors: The increase in creditors, especially "other creditors" jumping from £4,248 to £57,000 and taxation/social security liabilities rising markedly, could signify unpaid obligations or deferred payments that may trigger enforcement actions or penalties.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with its annual accounts and confirmation statement filings, which suggests compliance with statutory requirements.
• Continuity of Going Concern Basis: The directors state that accounts are prepared on a going concern basis, indicating their belief that the business will continue operating despite financial difficulties.
• Defined Ownership and Control: The company has clear control structure with two directors/shareholders, which can facilitate decision-making and potential recapitalisation actions.

4. Due Diligence Notes:

• Investigate the Nature and Terms of Creditors: Clarify the composition and repayment terms of the £82,793 current liabilities, especially the large "other creditors" balance, to assess risk of imminent cash outflows or enforcement.
• Examine Profit and Loss Account: Review underlying causes of the negative retained earnings and losses contributing to the net liabilities position. The absence of filed profit and loss accounts limits understanding of operational performance.
• Assess Related Party Transactions: Further details on the £1,904 receivable from Playground72 Ltd and any other related party dealings should be reviewed for financial reliance or risk concentrations.
• Cash Flow Analysis: Given cash on hand has dropped from £3,108 in 2023 to £241 in 2024, it is critical to assess recent cash flow trends and working capital management strategies.
• Director Changes and Impact: One director resigned in March 2024; understanding the circumstances and impact on governance or future strategy is advisable.