Company Number: 13878983

Analysis Date: 2025-07-20 13:38 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position in the latest financial year, indicating insolvency on a balance sheet basis. Current liabilities exceed current assets substantially, and long-term creditors surpass total assets, raising significant solvency concerns.

2. Key Concerns:

• Negative Net Assets: The company shows net liabilities of £1,391 as of January 2024, deteriorating from a small positive equity position previously. This indicates the company’s liabilities exceed its assets.
• Poor Liquidity Position: Current assets (£497) are minimal compared to current liabilities (£76,692), suggesting potential cash flow difficulties to meet short-term obligations.
• Reliance on Long-Term Creditors: The company has significant creditors due beyond one year (£177,289), which nearly equals fixed assets, indicating high leverage and dependency on creditor financing.

3. Positive Indicators:

• Fixed Asset Base: The company holds fixed assets valued at £252,093, which remain stable and could provide collateral or future value.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, indicating compliance with regulatory requirements so far.
• Single Director and PSC: The company is controlled by a single director and majority shareholder, which may facilitate streamlined decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors, including repayment schedules and interest obligations.
• Clarify the operational model and revenue generation given the minimal current assets and employee count.
• Review cash flow statements or management accounts to assess actual liquidity and working capital management.
• Confirm whether there are any contingent liabilities or off-balance-sheet risks not reflected in the micro-entity accounts.
• Assess the director’s plans or strategies to restore solvency and improve financial stability.