Company Number: 13846031

Analysis Date: 2025-07-19 11:55 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets and net current assets, indicating insolvency on a balance sheet basis, sustained over two consecutive years. The persistent and increasing net liabilities, combined with current liabilities exceeding current assets, pose a significant solvency and liquidity risk.

2. Key Concerns:

• Negative Net Assets and Net Current Assets: The company’s net liabilities increased from approximately £5,600 in 2022 to £12,787 in 2023, with net current liabilities worsening from £6,065 to £13,021, indicating ongoing financial distress and potential inability to meet short-term obligations.
• Declining Debtors vs. Creditors: Trade debtors dropped dramatically from £231,445 in 2022 to £1,305 in 2023, while trade creditors remain high (£74,141 in 2023), suggesting possible collection issues or a significant reduction in business activity, which may impair operational cash inflows.
• Lack of Audit and Limited Financial Disclosures: As a small company exempt from audit, the financial statements have not been independently verified. Additionally, the profit and loss account is not included, limiting insight into profitability, cash flows, and operational performance.

3. Positive Indicators:

• Current Cash Position: Despite the overall negative working capital, the company held £67,230 in cash at the end of 2023, which could provide a short-term buffer to meet immediate obligations.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, indicating compliance with Companies House requirements and no immediate regulatory concerns.
• Stable Share Capital: Although minimal, the issued share capital remains consistent, with no changes suggesting dilution or capital restructuring.

4. Due Diligence Notes:

• Investigate the reason for the significant reduction in trade debtors in 2023 and assess the collectability of outstanding receivables.
• Review the company's cash flow statements (not provided) to understand operational cash generation and liquidity management.
• Assess any contingent liabilities or provisions not fully disclosed that may exacerbate financial strain.
• Clarify the operational status and business sustainability, including customer contracts, supplier relationships, and future revenue prospects.
• Evaluate the background and experience of current directors, particularly the significant influence of the Italian-based PSCs, to understand governance and strategic direction.
• Determine if there are any ongoing negotiations with creditors or plans for recapitalization or restructuring.