Company Number: 13057652

Analysis Date: 2025-07-20 12:53 UTC

1. Risk Rating: HIGH
   The company’s financial statements report significant negative net current assets (liabilities) of £90,854 at the end of 2023, worsening from £66,245 in 2022, indicative of substantial short-term solvency issues. This puts the company at risk of being unable to meet its immediate obligations.

2. Key Concerns:

• Negative Net Current Assets: The balance sheet shows current liabilities (£184,236) exceeding current assets (£93,382) by a wide margin, signaling liquidity stress.
• Consistent Net Liability Position: The company has reported net liabilities (negative net assets) for the last two years, deteriorating from £66,245 in 2022 to £90,854 in 2023, undermining financial stability.
• Limited Financial Data and Lack of Profit/Loss Disclosure: The micro-entity accounts provide minimal detail, and no profit & loss figures or cash flow statements are available to assess operational performance or cash generation capabilities.

3. Positive Indicators:

• Growing Current Assets and Workforce: Current assets increased substantially from £3,007 in 2022 to £93,382 in 2023, alongside an increase in average employees from 3 to 6, which may indicate business expansion or increased operational activity.
• Timely Filings: The company is up to date with both accounts and confirmation statement filings, suggesting compliance with statutory obligations.
• Active Status with No Indication of Insolvency Proceedings: The company is active with no liquidation or administration status reported, and directors remain in place.

4. Due Diligence Notes:

• Obtain Full Financial Statements: Request detailed accounts including profit & loss and cash flow to evaluate operational viability and cash management.
• Review Director and Auditor Commentary: Seek management discussion or auditor notes (if any) for insights into going concern assumptions or contingent liabilities.
• Examine Trade Creditors and Debtors Aging: Investigate the composition of current liabilities and assets to understand liquidity pressures and potential collection risks.
• Assess Related Party Transactions and Director Loans: Given the modest shareholder capital (£100) and negative equity, check for undisclosed related party funding or director support.
• Validate Business Model Sustainability: Understand the revenue model in the software development sector and how the company plans to reverse the negative equity trend.