Company Number: 13134307

Analysis Date: 2025-07-20 12:23 UTC

1. Risk Rating: MEDIUM
   The company shows signs of financial strain in the most recent year, with net current liabilities and a significant decline in net assets compared to prior years. While still active and compliant with filings, the liquidity position has weakened, raising moderate concerns about short-term solvency.

2. Key Concerns:

• Negative net current assets (£-24) as of 31 January 2024, indicating current liabilities slightly exceed current assets, which may affect ability to meet short-term obligations.
• Sharp drop in net assets from £9,072 in 2023 to £415 in 2024, reflecting a substantial erosion of equity within one year.
• Director loans to the company increased to £8,647 (unsecured, interest free), indicating reliance on related party funding which may not be sustainable.

3. Positive Indicators:

• The company remains active, has no overdue filings, and complies with statutory requirements.
• Micro-entity classification suggests limited operational scale, which may reduce complexity and exposure to large liabilities.
• Share capital remains consistent and the sole director/PSC has maintained control and operational continuity since incorporation.

4. Due Diligence Notes:

• Investigate the underlying causes of the sharp decline in net assets and current asset coverage, including profitability, revenue trends, and expense drivers.
• Assess the nature, terms, and future prospects for repayment of director loans and any related party transactions.
• Review cash flow statements and working capital management to determine liquidity trends and potential funding needs.
• Confirm absence of contingent liabilities or pending regulatory or legal issues given the small size and director concentration.