Company Number: 13143442

Analysis Date: 2025-07-20 15:49 UTC

1. Risk Rating: HIGH

Justification: The company exhibits a concerning capital structure with net liabilities (negative net assets) as of the latest financial year. Despite significant fixed assets, the long-term creditors exceed total assets less current liabilities, indicating solvency issues. The minimal share capital and negative shareholders' funds amplify the risk profile.

2. Key Concerns:

• Solvency Risk: The company’s total net assets are negative (£-4,008 in 2024), with creditors falling due after more than one year (£502,698) exceeding total assets less current liabilities (£498,690). This suggests possible insolvency or at least tight solvency margins.
• Liquidity Concerns: Although net current assets are positive (~£99,910), the large long-term liabilities and negative equity raise concerns about the company’s ability to meet obligations over the longer term without refinancing or asset disposals.
• Operational Stability: The company is classified as a micro-entity with only two employees and minimal share capital (£1.00), which may imply limited operational scale and potential vulnerability in sustaining business operations or absorbing financial shocks.

3. Positive Indicators:

• Compliance: The company is active with no overdue filings for accounts or confirmation statements, indicating regulatory compliance and timely disclosures.
• Asset Base: Substantial fixed assets (~£399k) provide a tangible asset base which may support borrowing or sale to improve financial position.
• Stable Employment: Maintains a consistent small workforce (2 employees), pointing to operational continuity.

4. Due Diligence Notes:

• Examine the nature and terms of the long-term liabilities (£502,698) to understand repayment schedules, interest obligations, and creditor identity.
• Review cash flow statements and management accounts (not provided) to assess operational cash generation and short-term liquidity beyond balance sheet snapshots.
• Investigate the reason for persistent negative equity despite stable fixed assets and whether asset values are impaired or overstated.
• Assess director’s commentary or strategic plans addressing solvency and financial restructuring (not included in accounts).
• Verify any contingent liabilities or off-balance sheet obligations that may exacerbate financial risk.
• Confirm no director disqualifications or governance issues beyond the data presented.