Company Number: 13265866

Analysis Date: 2025-07-29 15:23 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net liabilities deepening substantially over the most recent financial year, indicating an inability to meet short-term obligations without external support.

2. Key Concerns:

• Negative Net Assets and Worsening Solvency: Net assets declined from -£1,872 in 2023 to -£29,117 in 2024, showing growing insolvency risk.
• Severe Working Capital Deficit: Current liabilities increased sharply to £42,725 against current assets of only £5,301, resulting in a net current liability position of -£33,339, which signals acute liquidity difficulties.
• Reliance on Director Advances: The director is owed £2,347 at year-end, implying dependency on director financing to sustain operations, which may not be sustainable long-term.

3. Positive Indicators:

• Active Trading Status with Filing Compliance: The company is active with no overdue accounts or confirmation statements, indicating compliance with regulatory requirements.
• Growing Workforce: Average employees increased from 3 to 6, suggesting some operational expansion or scaling of services.
• Experienced Director and Principal Shareholder: The sole director, Caroline Bettina Carter, is a practicing accountant and holds majority control, potentially ensuring focused management and oversight.

4. Due Diligence Notes:

• Investigate causes for the significant increase in current liabilities, particularly the jump from £6,628 to £42,725 in one year.
• Review cash flow statements and bank reconciliations to assess actual liquidity and ability to meet short-term debts.
• Assess the sustainability of business operations and revenue streams given the financial deterioration and reliance on director advances.
• Confirm whether any contingent liabilities or off-balance-sheet obligations exist that may exacerbate financial risks.
• Understand the nature of creditor relationships and whether any payment arrangements or disputes exist.