Company Number: 13245921

Analysis Date: 2025-07-20 17:46 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with persistent and increasing net liabilities over the past four years, indicating it is unable to meet its obligations from its existing asset base. Negative net current assets highlight liquidity issues, and the small scale of operations (micro-entity with 2 employees) raises questions on operational capacity and sustainability.

2. Key Concerns:

• Negative Net Assets: The net liabilities have worsened from £2,370 positive in 2021 to £10,744 negative in 2025, reflecting ongoing losses or capital erosion.
• Poor Liquidity Position: Current liabilities far exceed current assets, with net current liabilities over £11k in the latest year, indicating potential cash flow constraints to meet short-term debts.
• Limited Capital Base: Share capital is nominal (£1), and shareholder funds are deeply negative, suggesting limited financial buffer or external equity support.

3. Positive Indicators:

• Timely Filing: The company has maintained current filings for both accounts and confirmation statements, demonstrating compliance with regulatory requirements.
• Active Status and Continuity: The company remains active since incorporation in 2021, with no signs of liquidation or administration.
• Small Scale, Low Overhead: Micro-entity status and a small employee base may allow for flexible cost management in a niche IT services sector (computer facilities management).

4. Due Diligence Notes:

• Investigate the cause of recurring losses or capital depletion and whether these are due to startup phase investments or operational inefficiencies.
• Assess the company’s cash flow forecasts and ability to service current liabilities given persistent negative working capital.
• Review any contingent liabilities or off-balance sheet obligations not evident in the micro-entity accounts.
• Confirm the nature of contracts and revenue streams to evaluate business sustainability in the competitive IT facilities management sector.
• Evaluate director and management experience, given the small team and financial challenges.