Company Number: 13494654

Analysis Date: 2025-07-29 12:55 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to its negative net assets and deteriorating liquidity position. The financial statements for the year ended 31 July 2024 show a net asset deficiency of £5,730 and negative working capital of £18,768, indicating significant solvency and liquidity pressures.

2. Key Concerns:

• Negative Shareholders' Funds: The company’s shareholders' funds have moved from a positive £4,168 in 2023 to a negative £5,830 in 2024, reflecting accumulated losses and eroding equity.
• Severe Liquidity Shortfall: Current liabilities (£20,436) substantially exceed current assets (£1,668), with zero debtors in 2024 versus £7,264 the prior year, suggesting cash flow constraints and potential difficulties meeting short-term obligations.
• Reliance on Director Loan Account: A significant portion of current liabilities (£14,412) is owed to the director as a loan, which while interest-free and repayable on demand, indicates dependence on related party funding rather than sustainable operational cash generation.

3. Positive Indicators:

• No Overdue Filings or Regulatory Issues: Accounts and confirmation statements are filed on time with no indication of compliance breaches or penalties.
• Going Concern Statement by Directors: Management has not identified material uncertainties about the company’s ability to continue as a going concern, which may indicate confidence in future trading or restructuring plans.
• Asset Base: The company holds tangible fixed assets valued at £19,843, which could provide some collateral value if needed.

4. Due Diligence Notes:

• Investigate the cause of the large drop in current assets and elimination of debtors from 2023 to 2024; assess the company’s receivables and cash collection processes.
• Review the terms and sustainability of the director’s loan account, including the likelihood of repayment and any plans to convert or write off this liability.
• Examine the company’s business model, customer base, and revenue streams to understand the root causes of financial deterioration and prospects for recovery.
• Confirm there are no contingent liabilities or off-balance sheet obligations that may exacerbate solvency risks.
• Evaluate management plans or external support arrangements referenced in the going concern disclosure.