Company Number: 13457375

Analysis Date: 2025-07-20 17:17 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, evidenced by substantial net liabilities and negative net current assets that have worsened over the last three years. The current liabilities far exceed current assets, indicating liquidity concerns and potential difficulties in meeting short-term obligations.

2. Key Concerns:

• Negative Net Assets and Net Current Assets: As of 30 June 2024, net assets stand at -£277,324 with net current liabilities of -£570,628, deteriorating from prior years. This indicates ongoing losses or accumulated deficits eroding the equity base.
• High Current Liabilities Relative to Cash and Assets: Current liabilities of £597,753 greatly exceed cash and short-term assets (£27,125), raising concerns about the company’s ability to cover immediate debts without additional financing or asset disposals.
• Concentration of Control and Low Share Capital: The company has minimal share capital (£3) and control is concentrated among a few individuals/entities. This may limit financial flexibility and increase governance risk if additional capital injection or restructuring is required.

3. Positive Indicators:

• Operating Asset Base Stable: Tangible fixed assets (primarily property) remain relatively steady around £293k, indicating some asset backing.
• Timely Filing and Compliance: The latest accounts and confirmation statement are filed on time without overdue notices, demonstrating compliance with statutory requirements.
• Active Status and No Insolvency Proceedings: The company is active and not under liquidation, administration, or receivership, suggesting ongoing operations.

4. Due Diligence Notes:

• Investigate the nature and terms of the “Other creditors” amounting to £587,372 to understand if these are related party loans, trade payables, or other obligations, and their maturity profile.
• Review cash flow statements and underlying operational cash generation to assess the company’s ability to manage working capital and service debts.
• Examine plans or arrangements for recapitalization or debt restructuring given the persistent negative equity and liquidity shortfall.
• Confirm whether the tangible fixed assets are encumbered or available to support financing.
• Assess any related party transactions or financial support from shareholders given the ownership structure.