Company Number: 12544117

Analysis Date: 2025-07-29 15:52 UTC

1. Risk Rating: HIGH
   The company exhibits persistent net liabilities and negative working capital, indicating significant solvency and liquidity risks. The latest accounts show net liabilities of £28,661 and net current liabilities exceeding £110,000, which raises concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company has reported net liabilities for multiple years, with current liabilities far exceeding current assets, suggesting ongoing cash flow difficulties.
• Poor Liquidity Position: Current liabilities in excess of £129,000 against current assets of roughly £19,000 imply a strained liquidity position that could impair operational continuity.
• Frequent Changes in Control and Directors: The company has seen multiple changes in directors and persons with significant control over a short period, potentially indicating instability in governance or ownership structure.

3. Positive Indicators:

• No Filing Overdues: The company’s accounts and confirmation statements are filed on time, indicating compliance with statutory obligations.
• Small Employee Base: With an average of 4 employees, the operational scale is limited, which may reduce fixed costs and allow for more agile management of resources.
• Exemption from Audit: The company qualifies for audit exemption under micro-entity provisions, reducing administrative burden and costs.

4. Due Diligence Notes:

• Investigate Cash Flow Management: Detailed review of cash flow statements and creditor/debtor aging to assess how the company manages liquidity challenges.
• Examine Reasons for Persistent Losses: Review underlying causes of recurring negative net assets, including profit and loss trends and cost structures.
• Assess Governance Stability: Evaluate the impact of director and PSC changes on company strategy and operations, including any related party transactions.
• Confirm Continuity of Trade: Verify whether the company is currently trading and if it has access to working capital or external financing to support ongoing operations.