Company Number: 13837018

Analysis Date: 2025-07-20 11:33 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in financial health as of the latest accounts. The reversal from positive net assets and shareholders funds in 2024 to negative equity in 2025 is a critical solvency red flag, indicating it cannot currently cover its liabilities with its assets.

2. Key Concerns:

• Negative Shareholders' Funds: The company’s net assets fell from +£46,101 in 2024 to -£815 in 2025, signaling potential insolvency issues.
• Liquidity Strain: Current liabilities (£62,876) exceed current assets (£29,625) in 2025, indicating a working capital deficit and potential cash flow difficulties.
• Rapid Financial Deterioration: Within one year, the company’s financial position worsened markedly, which may reflect operational or market challenges.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with statutory filing deadlines, suggesting acceptable governance and regulatory adherence.
• Stable Employment Level: The average number of employees remained consistent at 4, indicating some operational continuity.
• Experienced Director and Clear Control: Single director with 75-100% ownership provides streamlined decision-making without governance conflicts.

4. Due Diligence Notes:

• Investigate causes behind the sharp decline in current assets and increase in current liabilities during the latest financial year.
• Review cash flow statements and creditor aging to assess immediate liquidity risks.
• Examine the company’s revenue trends, contract pipeline, and operational efficiency for sustainability.
• Confirm if any contingent liabilities or related party transactions contributed to the equity erosion.
• Clarify whether the director has plans or has implemented restructuring or refinancing measures.