Company Number: 12761761

Analysis Date: 2025-07-29 16:17 UTC

1. Risk Rating: HIGH
   The company shows significant solvency risks due to high long-term liabilities relative to its assets, persistent negative working capital, and very low shareholder funds. The financial structure indicates potential difficulty in meeting obligations as they fall due.

2. Key Concerns:

• Excessive Long-Term Debt: The company has creditors falling due after more than one year of £420,000 against total assets of approximately £443,000, suggesting a high leverage ratio with limited equity cushion.
• Negative Net Current Assets: The latest year shows net current liabilities of £4,295, indicating potential liquidity stress in meeting short-term obligations.
• Low Shareholders’ Funds/Erosion of Equity: Shareholders’ funds have improved slightly to £2,612 but remain very low relative to debt levels, reflecting accumulated losses or capital erosion since incorporation.

3. Positive Indicators:

• Stable Fixed Assets Base: Fixed assets remain steady around £428,000, indicating some tangible asset backing.
• Consistent Director Involvement: Directors have been stable since incorporation, suggesting continuity in management.
• No Overdue Filings: The company is current on statutory accounts and confirmation statements, reflecting compliance with filing obligations.

4. Due Diligence Notes:

• Investigate the nature and terms of the £420,000 long-term creditors, including whether these are bank loans, director loans, or other related party debts.
• Clarify the causes behind persistent negative working capital and assess cash flow forecasts to evaluate liquidity risk.
• Review directors’ advances (£439,092 owed to the company from Mr. Camenzuli) for any related party transaction risks and repayment plans.
• Confirm whether the company has ongoing revenue streams or contracts to sustain operations given small current assets and liabilities structure.
• Assess any contingent liabilities or off-balance sheet obligations not disclosed in micro-entity accounts.