Company Number: 12919093

Analysis Date: 2025-07-29 14:46 UTC

1. Risk Rating: HIGH

The company exhibits a high risk profile primarily due to its persistent and substantial negative net current assets, indicating liquidity challenges and potential difficulties in meeting short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: Each year from 2020 to 2023, the company's current liabilities significantly exceed its current assets by over £800,000, highlighting ongoing liquidity risks.
• High Director Loans: Over £1 million of current liabilities are director loans that are interest-free and repayable on demand, suggesting dependence on director funding which may not be sustainable long-term.
• Minimal Equity Buffer: Shareholders’ funds remain very low (£24,076 in 2023), showing limited capital cushion to absorb losses or financial shocks.

3. Positive Indicators:

• Increasing Fixed Assets: Fixed assets have grown steadily from £748,171 in 2020 to £859,667 in 2023, indicating potential asset base growth.
• Timely Filing Compliance: The company is up to date with accounts and confirmation statement filings, demonstrating regulatory compliance.
• Stable Directorship: The sole director has been consistent since incorporation with no adverse records, supporting operational continuity.

4. Due Diligence Notes:

• Examine the nature and terms of the director loans, including any informal arrangements, repayment plans, and the director’s willingness to continue funding.
• Investigate cash flow statements (if available) to assess operational cash generation and the company’s ability to service liabilities.
• Review asset valuations and potential for realisation to meet liabilities, especially regarding the fixed assets.
• Clarify the business model's sustainability given the micro-entity status but relatively high fixed asset base and ongoing working capital deficits.
• Confirm absence of any undisclosed contingent liabilities or regulatory issues beyond what is publicly filed.