Company Number: 13749631

Analysis Date: 2025-07-29 12:50 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk due to negative net assets and shareholders' funds (£-66,563) as of the latest financial year, indicating liabilities exceed assets. The increase in current liabilities from £25,640 in 2022 to £96,558 in 2023, without corresponding growth in current assets, raises liquidity concerns. The company is a micro-entity but its financial position is deteriorating rapidly.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company moved from a marginally positive net asset position (£235) in 2022 to a substantial deficit (£-66,563) in 2023, suggesting losses or write-downs that impair financial stability.
• Liquidity Mismatch: Current liabilities have nearly quadrupled while current assets remained flat, resulting in a working capital deficit of approximately £-68,464, which could impair the company's ability to meet short-term obligations.
• Rapid Increase in Creditors: The sharp rise in amounts falling due within one year may indicate cash flow difficulties or reliance on credit, which is a red flag for operational sustainability.

3. Positive Indicators:

• Compliance Timeliness: The company is up to date with its filing obligations for both accounts and confirmation statements, demonstrating adherence to regulatory requirements and good governance practices.
• Active Status and Increasing Employment: The company remains active and has increased its average employee count from 4 to 6, suggesting ongoing operational activity and potential business growth.
• Clear Ownership and Control: The company has a single shareholder with 75-100% ownership and director control, which may facilitate swift decision-making.

4. Due Diligence Notes:

• Review Underlying Causes of Net Asset Decline: Investigate the nature of losses or write-downs that have led to the negative equity position, including any impairments, provisions, or extraordinary expenses.
• Examine Creditors Composition and Payment Terms: Understand the makeup of current liabilities, their aging profile, and the company's liquidity management strategies.
• Assess Cash Flow Forecasts and Funding Plans: Evaluate whether the company has access to additional funding or intends to restructure liabilities to restore solvency and liquidity.
• Confirm No Director or Key Person Disqualifications: Although none are noted here, verify that directors have clean conduct records to mitigate governance risk.
• Consider Sector Risks: Maintenance and repair of motor vehicles (SIC 45200) can be sensitive to economic cycles; assess market positioning and competitive environment.