Company Number: 12836944

Analysis Date: 2025-07-20 14:58 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position of £6,600 as of 31 August 2024, indicating insolvency on a balance sheet basis. There is a material creditor balance due after one year (£25,000) which significantly exceeds current assets. The negative equity and rising long-term liabilities suggest solvency risk is elevated.

2. Key Concerns:

• Negative net assets and shareholders funds (-£6,600) indicate the company’s liabilities exceed its assets, a sign of financial distress.
• Long-term creditors are £25,000, a sharp increase from £8,000 the previous year, raising questions about the company’s ability to meet its long-term obligations.
• Current liabilities are high relative to current assets (£9,000 vs. £3,000), although net current assets are positive due to prepayments and accrued income, possibly raising liquidity timing concerns.

3. Positive Indicators:

• The company is current on its filings with Companies House, including accounts and confirmation statements, indicating regulatory compliance.
• The business has grown fixed assets from £400 to £7,400, suggesting investment in operational capacity or resources.
• The average number of employees increased from 1 to 2, which may signal operational growth or scaling efforts.
• The company operates in a niche travel sector (theme park tours) with an active website and multiple contact points, supporting ongoing commercial activity.

4. Due Diligence Notes:

• Investigate the nature and terms of the £25,000 long-term creditor balance to assess repayment risk and any covenant implications.
• Review cash flow statements or management accounts if available to understand liquidity dynamics beyond the balance sheet snapshot.
• Examine the directors’ report or any narrative disclosures for insight into the company’s strategy for returning to positive equity and managing debts.
• Confirm there are no director disqualifications or governance issues; current data shows no such flags.
• Query the composition of prepayments and accrued income (£18,000) which materially boosts net current assets—determine if these amounts are realizable in the short term.