Company Number: 13139662

Analysis Date: 2025-07-29 20:43 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risks, with persistent net liabilities and negative shareholders’ funds that have deteriorated over five years. The large current liabilities relative to current assets and net current liabilities indicate liquidity stress.

2. Key Concerns:

• Negative net assets and shareholders’ funds worsening from -£77k in 2021 to -£189k in 2025, signaling ongoing losses or capital erosion.
• Current liabilities exceed current assets by over £200k in the latest year, suggesting potential cash flow and short-term obligation challenges.
• Reliance on long-term creditors (£341k in 2025) which may indicate heavy debt financing and refinancing risk.

3. Positive Indicators:

• The company holds fixed assets valued above £350k consistently, representing tangible property assets that could support operations or serve as collateral.
• Director’s statement supports going concern basis, indicating management’s belief in short-term operational continuity.
• Micro-entity accounting with no audit requirement reduces compliance burden.

4. Due Diligence Notes:

• Investigate the nature and terms of the company’s long-term creditors and debt structure to assess refinancing and default risk.
• Review underlying cash flow statements and profit & loss data (not included here) to understand operational performance and liquidity management.
• Confirm whether the negative equity is due to cumulative losses or accounting adjustments, and assess future profitability and capital injection plans.
• Consider risks related to sole director and shareholder control, including governance and decision-making concentration.