Company Number: 13484934

Analysis Date: 2025-07-20 11:33 UTC

1. Risk Rating: HIGH
   The company exhibits deteriorating financial health with net current liabilities and negative net assets as of the latest accounts. The significant increase in current liabilities, particularly bank loans and overdrafts, coupled with declining shareholder funds, suggests solvency and liquidity risks.

2. Key Concerns:

• Negative net assets of £-3,450 and net current liabilities of £-10,937 as at 31 December 2023 indicate the company’s liabilities exceed its assets, raising concerns about its ability to meet obligations.
• Current liabilities increased to £32,522 from £3,649 (previous year), mainly driven by bank loans and overdrafts (£25,995), suggesting potential cash flow stress or reliance on external financing.
• Decline in cash at bank from £34,129 to £21,585 despite increased borrowings may point to operational cash flow difficulties or increased expenses.

3. Positive Indicators:

• The company remains active and has no overdue filings, indicating compliance with Companies House filing requirements and basic governance.
• Directors have maintained a stable workforce (average 2 employees) indicating consistent operational scale.
• Tangible fixed assets remain steady with modest depreciation, reflecting maintained operational capacity.

4. Due Diligence Notes:

• Investigate the nature and terms of bank loans and overdrafts to assess refinancing risks and debt servicing capacity.
• Review detailed cash flow statements and profit and loss accounts (not filed publicly) to understand operational profitability and working capital management.
• Assess directors’ plans or strategies for returning to positive net assets and improving liquidity, including potential capital injections or restructuring.
• Confirm whether any contingent liabilities or off-balance sheet obligations exist that could further impact solvency.