Company Number: 13420319

Analysis Date: 2025-07-19 12:23 UTC

1. Risk Rating: HIGH
   The company shows a marked deterioration in liquidity and working capital, with net current liabilities of £25,195 as of May 2024 compared to net current assets in prior years. Current liabilities more than doubled in a year, indicating growing short-term debt burden. The very low equity of £1,617 and minimal share capital also raise solvency concerns.

2. Key Concerns:

• Liquidity risk: Cash and current assets (£37,971) are insufficient to cover substantially increased current liabilities (£63,166), showing potential cash flow stress.
• Solvency risk: Net assets have dropped sharply from £7,366 to £1,617, and shareholders’ funds are similarly low, indicating weakened financial stability.
• Growing creditor obligations: Other creditors increased from £19,727 to £59,414, a significant jump that may represent unpaid liabilities or financing arrangements needing further scrutiny.

3. Positive Indicators:

• The company is up to date with filings and not overdue on accounts or confirmation statements, demonstrating regulatory compliance.
• Turnover recognition policies follow applicable accounting standards (FRS 102), and the company is applying small company reporting exemptions appropriately.
• Operating in the HR provision sector (SIC 78300) with a small but growing workforce (from 1 to 2 employees), suggesting some operational activity and potential growth.

4. Due Diligence Notes:

• Investigate the nature and terms of the 'other creditors' category, which has increased significantly and may impact short-term cash obligations.
• Review cash flow statements and forecasts (if available) to assess liquidity management and ability to meet short-term liabilities.
• Clarify the reason for the sharp decline in net assets and shareholders’ funds between 2023 and 2024, including potential losses or asset impairments.
• Assess the business model sustainability by understanding revenue trends and client contracts, given the company’s young age (incorporated 2021) and recent name change.
• Confirm the absence of any director disqualifications or governance issues related to Ms Emma Pickering Brian, who holds significant control.