Company Number: 14301105

Analysis Date: 2025-07-29 17:11 UTC

1. Risk Rating: HIGH
   The company shows significant ongoing net current liabilities and negative working capital, indicating potential difficulty in meeting short-term obligations. Although net assets have improved slightly, the financial position remains fragile for a company incorporated in 2022.

2. Key Concerns:

• Persistent negative net current assets: The company has net current liabilities of £26,220 as of August 2024, an improvement from £55,717 the previous year, but still indicative of liquidity strain.
• Low cash balances: Cash on hand is only £88, which raises concerns about immediate liquidity and operational cash flow.
• High short-term creditor balances relative to assets: Current liabilities stand at £55,739, mostly comprising bank loans/overdrafts and other creditors, which could pressure cash flow and creditor relations.

3. Positive Indicators:

• Improvement in net assets: The company moved from net liabilities of £7,717 in 2023 to net assets of £9,780 in 2024, showing some positive movement in equity.
• Consistent filing and compliance: No overdue accounts or confirmation statements, reflecting good regulatory compliance and governance practices.
• Tangible fixed assets still present: Fixtures and fittings valued at £36,000 suggest operational infrastructure is in place.

4. Due Diligence Notes:

• Investigate the nature and collectability of debtors (£29,431), which constitute the majority of current assets, to assess true liquidity.
• Review the terms and repayment schedule of bank loans and other creditors to understand cash flow obligations and refinancing risks.
• Examine the company’s turnover and profitability trends (not disclosed here) to evaluate operational sustainability and future cash generation potential.
• Clarify the reasons behind the previous company name change in December 2024 and any business restructuring implications.