Company Number: 13558562

Analysis Date: 2025-07-29 19:11 UTC

1. Risk Rating: HIGH

Justification: The company shows persistent negative net current assets indicating potential liquidity risks. Current liabilities substantially exceed current assets for the recent years. The business is relatively new (incorporated in 2021) and has very low equity and net assets, which raises concerns over solvency and operational stability.

2. Key Concerns:

• Negative Net Current Assets: For the years 2021 and 2023, net current assets are negative (e.g., -£12,224 in 2023), signaling potential inability to meet short-term liabilities.
• Increasing Current Liabilities: Current liabilities rose from £5,777 in 2022 to £20,239 in 2023, which is a sharp increase and may indicate growing creditor pressure or delayed payments.
• Limited Financial Cushion: Shareholders’ funds remain nominal (£1,276 in 2023), implying minimal equity buffer to absorb losses or support operations.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, suggesting good regulatory compliance.
• Active Website and Contact Presence: Active website and multiple contact channels show operational engagement and customer accessibility.
• Tangible Fixed Assets Growth: Increase in fixed assets from £11,874 (2022) to £13,500 (2023) may reflect investment in business infrastructure.

4. Due Diligence Notes:

• Examine cash flow statements and bank reconciliations to assess liquidity dynamics beyond balance sheet snapshots.
• Investigate the nature and terms of current liabilities, particularly the large increase in “Other creditors” (£17,534 in 2023).
• Review management plans for improving working capital and how the company intends to address negative net current assets.
• Assess the ongoing viability of the business model given the small size, limited employee base (2 persons), and financial position.
• Consider obtaining trade references or credit checks to understand supplier relationships and payment history.