Company Number: 12824398

Analysis Date: 2025-07-20 14:59 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to persistent and significant negative net current assets and shareholders' funds, indicating ongoing solvency challenges.

2. Key Concerns:

• Solvency Risk: The company has substantial net current liabilities (£204k negative as of August 2024), indicating inability to cover short-term obligations from current assets. Shareholders’ funds remain deeply negative (£204k), showing accumulated losses and erosion of equity.
• Liquidity Concerns: Despite an increase in current assets in the latest period (£64k from £14k prior year), liabilities remain significantly higher, suggesting liquidity pressure and potential cash flow difficulties. The imbalance could impede meeting immediate creditor demands.
• Operational Stability: The average number of employees has decreased sharply from 8 in 2023 to 2 in 2024, which may reflect operational downsizing or instability. Also, no profit or turnover data is provided, but the continued losses imply ongoing financial strain.

3. Positive Indicators:

• The company is current with all statutory filings (accounts and confirmation statements are up to date and not overdue).
• The share capital is nominally intact (£100), and the company remains active with no liquidation or administration status.
• The principal director, Andrew Marc Stowell, maintains a clear control and presence, suggesting continuity of management.

4. Due Diligence Notes:

• Investigate the reasons behind the persistent negative equity and large current liabilities; review creditor composition and payment terms.
• Assess cash flow statements (not provided) to understand operational cash generation and financing activities.
• Review business plan and revenue streams to evaluate prospects for returning to profitability and restoring financial health.
• Clarify the impact of the reduction in workforce on business operations and cost structure.
• Confirm absence of director disqualifications or regulatory compliance issues beyond filing status.