Company Number: 13445467

Analysis Date: 2025-07-29 15:04 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net current assets and very minimal net assets, with liabilities almost entirely comprising amounts owed to group undertakings. This suggests significant reliance on intra-group funding and limited liquid resources to meet short-term obligations independently.

2. Key Concerns:

• Negative Working Capital: The company has consistently reported net current liabilities of approximately £475,400, indicating an inability to cover short-term debts with current assets.
• Dependence on Group Funding: Creditors largely consist of amounts owed to related parties (£474,518 in 2023), reflecting reliance on group support rather than external financing or operational cash flow.
• Minimal Equity Cushion: Shareholders' funds remain nominal (£100), offering negligible buffer against operational or financial shocks.

3. Positive Indicators:

• Timely Filing Compliance: Both accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance.
• Stable Investment Value: The investment in the wholly owned subsidiary CGA Automation Limited is carried at £475,500 with no impairment recognized this year, suggesting the underlying asset value is maintained.
• Experienced Directors: Four directors have been consistently involved since incorporation, which may indicate stable governance at the management level.

4. Due Diligence Notes:

• Examine Group Financial Health: Investigate the financial stability and creditworthiness of related parties providing funding to assess risk of withdrawal or restructuring of intra-group loans.
• Subsidiary Performance Review: Obtain detailed financial and operational data on CGA Automation Limited to evaluate the sustainability and profitability of the core business activities.
• Cash Flow Analysis: Review cash flow statements and working capital management to determine if the company can improve liquidity independently or remains dependent on group advances.