Company Number: 13163086

Analysis Date: 2025-07-20 12:12 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, evidenced by substantial net liabilities (-£79,498) and persistent negative shareholders' funds over multiple years. Current liabilities notably exceed current assets, suggesting liquidity stress. Despite some modest growth in fixed assets and current assets, the large amount of long-term creditors (£101,500) indicates ongoing financial obligations that the company is struggling to cover.

2. Key Concerns:

• Persistent Negative Net Assets: Over the past three years, the company has reported negative net assets exceeding £79k, indicating accumulated losses or undercapitalization.
• Liquidity Mismatch: Although net current assets are positive (£9,727 in 2024), the current liabilities are significantly high (£101,500 due after more than one year plus some short term liabilities), implying potential cash flow difficulties in meeting obligations as they fall due.
• Reliance on Long-term Creditors: The consistent presence of large creditors falling due after more than one year points to ongoing debt financing that may pressure the company’s financial stability if not managed or refinanced appropriately.

3. Positive Indicators:

• No Filing Overdue: The company is current with its statutory filings (accounts and confirmation statement), indicating compliance with regulatory requirements.
• Modest Growth in Fixed and Current Assets: There was an increase in fixed assets from £1,853 to £12,675 and current assets from £7,526 to £54,508 in the latest year, which may reflect some operational expansion or investment.
• Small Employee Base: With only 2 employees on average, the company may have limited fixed overheads, potentially allowing flexibility in cost management.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors amounting to approximately £100k, including maturity profiles, interest rates, and covenants.
• Review cash flow statements and management forecasts to assess the company’s ability to service debts and improve liquidity.
• Examine the reasons behind sustained negative equity and whether there are plans for recapitalization or profitability improvements.
• Confirm the operational model and revenue generation strategy given the SIC codes spanning environmental consulting, research, and manufacturing, to understand business sustainability.