Company Number: 14501403

Analysis Date: 2025-07-29 12:33 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant deterioration in net assets from £13,655 in 2024 to just £10 in 2025, coupled with a sharp increase in current liabilities and a drastic reduction in net current assets. This indicates a materially weakened financial position and potential solvency concerns.

2. Key Concerns:

• Severe decline in net assets and working capital: Net assets have fallen from £13,655 to £10 within one year. Net current assets dropped from £12,563 to £2,067, reflecting increased short-term obligations and reduced liquidity.
• Current liabilities more than doubled: Current liabilities increased from £12,485 in 2024 to £26,426 in 2025, signaling growing obligations due within one year that may pressure cash flows.
• Accruals and deferred income surged: These increased over tenfold from £292 to £3,339, which may indicate revenue recognition timing issues or deferred expenses impacting the balance sheet.

3. Positive Indicators:

• No overdue filings: Both accounts and confirmation statement filings are up to date, demonstrating compliance with regulatory requirements.
• Stable directorship and ownership: The sole director and 75-100% shareholder is consistent, reducing governance complexity and ownership disputes.
• Micro-entity status with small staff complement: With only 2 employees and micro-entity reporting, the company likely has a lean cost structure.

4. Due Diligence Notes:

• Investigate reasons behind the sharp increase in current liabilities and accruals: Understand if these are due to operational issues, delayed payments, or accounting treatments.
• Review cash flow statements and trading performance: To assess if the company can meet short-term obligations and if the decline in net assets is due to losses or other factors.
• Assess any contingent liabilities or off-balance sheet risks: Given the financial deterioration, check for any potential hidden obligations or disputes.
• Evaluate business model sustainability: Confirm ongoing operational viability given the financial strain, especially with limited fixed assets.
• Confirm director’s plans to address solvency risks: Determine if there are plans for recapitalisation or restructuring.