Company Number: 13757733

Analysis Date: 2025-07-29 20:23 UTC

1. Risk Rating: HIGH
   The company shows significant negative net assets and working capital deterioration in the most recent year, indicating solvency concerns.

2. Key Concerns:

• The 2025 accounts report net current liabilities of £1,171 and total net liabilities of £11,919, a marked decline from prior years where net assets were positive. This suggests the company is currently insolvent on a balance sheet basis.
• Current liabilities increased sharply from £5,765 in 2024 to £10,748 in 2025, while current assets are effectively zero, reflecting liquidity risk and potential cash flow problems.
• The company is classified as a micro-entity with only one employee (the director), which may indicate limited operational scale and resilience. The small size raises concerns about sustainability and ability to absorb financial shocks.

3. Positive Indicators:

• The company is active with no overdue filings, demonstrating compliance with statutory requirements to date.
• The sole director and 100% shareholder, Mr. Rahul Vaja, has been in place since incorporation, suggesting stable ownership and management continuity.
• The company’s incorporation is recent (2021), so the limited financial history may reflect a startup phase rather than long-term distress.

4. Due Diligence Notes:

• Investigate the cause of the significant jump in liabilities and erosion of net assets in the 2025 accounts to understand if this is a one-off issue or indicative of ongoing financial distress.
• Assess cash flow statements (if available) or bank statements to verify liquidity position and ability to meet short-term obligations.
• Review any contingent liabilities or off-balance sheet exposures not reflected in the micro-entity accounts.
• Consider management plans or creditor arrangements to address the negative equity position.
• Validate the ongoing viability of the business model given its micro scale and sector (repair and maintenance of ships and boats), which may have specific industry risks.