Company Number: 13599318

Analysis Date: 2025-07-20 14:19 UTC

1. Risk Rating: MEDIUM
   The company shows growth in net assets and fixed assets but continues to have negative net current assets and significant long-term finance lease obligations. This indicates moderate solvency risk and liquidity concerns, though no immediate signs of distress.

2. Key Concerns:

• Negative net current assets for three consecutive years (£-4,091 in 2023), suggesting working capital deficits and potential short-term liquidity pressure.
• High long-term finance lease liabilities (£94,414 in 2023), more than double the previous year, may strain future cash flows.
• Reliance on finance leases for fixed assets, posing refinancing and operational risk if cash flows weaken.

3. Positive Indicators:

• Net assets and shareholders’ funds have increased substantially from £5,699 in 2022 to £40,554 in 2023, reflecting asset growth and possibly retained earnings or capital injection.
• Cash at bank and in hand has increased significantly (£4,696 in 2023 vs. £852 in 2022), providing some liquidity buffer.
• The company remains active with no overdue filings, demonstrating compliance with Companies House requirements.

4. Due Diligence Notes:

• Investigate the nature and terms of the finance leases and hire purchase contracts to assess repayment schedules and covenants.
• Review cash flow statements (not provided) to evaluate operational cash generation and ability to meet short-term liabilities.
• Clarify the source of net asset growth—whether it is from profitability or capital contributions.
• Confirm the absence of any director or governance issues, given a recent director appointment and resignation within the same year.
• Assess turnover and profitability trends, which are not disclosed here, to evaluate operational sustainability.