Company Number: 12476147

Analysis Date: 2025-07-20 11:44 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, with net current liabilities of £31,893 and negative shareholders’ funds of £31,152 as of 29 February 2024. This indicates the company is currently unable to meet its short-term obligations from available assets.

2. Key Concerns:

• Solvency and Negative Equity: The company’s net liabilities and negative shareholders’ funds suggest financial distress and potential insolvency risk.
• Liquidity Shortfall: Cash on hand is low at £2,892, while current liabilities stand at £58,144, indicating potential cash flow difficulties to cover immediate debts.
• Declining Financial Position: Compared to the previous year (2023), there has been a sharp deterioration from positive net current assets of £38,293 to negative £31,893, signaling operational or financial challenges.

3. Positive Indicators:

• Timely Compliance: The company is up to date on both accounts and confirmation statement filings, which reduces regulatory risk.
• Established Management: The same two directors have been in place since incorporation, suggesting stable governance at the leadership level.
• Small Company Reporting: The company qualifies for small company exemptions, potentially reducing administrative burdens.

4. Due Diligence Notes:

• Investigate the causes behind the sharp deterioration in working capital and negative equity within one year.
• Review the nature and aging of debtors (£23,359) to assess collectability and impact on liquidity.
• Assess the company’s cash flow forecasts, ongoing contract pipeline, and ability to manage creditor payments given the liquidity shortfall.
• Confirm there are no undisclosed contingent liabilities or off-balance-sheet obligations that could exacerbate financial stress.
• Evaluate directors’ plans or actions to restore solvency and operational stability.