Company Number: 14356777

Analysis Date: 2025-07-29 12:25 UTC

1. Risk Rating: MEDIUM
   The company shows a decline in net assets and a significant negative net current asset position as of the latest financial year, indicating potential liquidity and solvency pressures. However, it remains operational with timely filings and no governance issues reported.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£31,044) exceed current assets (£7,366) by a substantial margin, resulting in a negative net current asset position (-£23,678) for 2024, which may impair the company’s ability to meet short-term obligations.
• Declining Net Assets: Net assets have decreased sharply from £25,505 in 2022 to £6,322 in 2024, suggesting erosion of equity possibly due to operating losses or increased liabilities.
• Small Scale and Limited Financial Disclosure: As a micro-entity, the company files abridged accounts with limited disclosure, restricting insight into profitability, cash flows, and detailed risk factors.

3. Positive Indicators:

• Current Compliance: Accounts and confirmation statement filings are up to date with no overdue returns, indicating good regulatory compliance and governance discipline.
• Stable Fixed Assets: Fixed assets have remained steady at £30,000 over three years, implying some asset stability and possible capital investment.
• Consistent Management: The same four directors have been in place since incorporation, potentially providing stable leadership and operational continuity.

4. Due Diligence Notes:

• Obtain the full profit and loss account or management accounts to understand the drivers behind the decline in net assets and negative working capital.
• Clarify the nature and maturity of current liabilities—whether these are trade payables, short-term loans, or other obligations—and assess repayment plans or refinancing options.
• Review cash flow forecasts and bank facilities to evaluate ongoing liquidity and operational sustainability.
• Investigate if the company has any contingent liabilities or off-balance-sheet commitments that could exacerbate financial risk.
• Consider background checks on directors for any adverse records, although none are indicated here.