Company Number: 12433190

Analysis Date: 2025-07-29 15:50 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with persistent negative net assets and liabilities exceeding assets. Despite some positive working capital, the overall financial position indicates distress and a risk to meeting obligations.

2. Key Concerns:

• Negative Shareholders' Funds: Net liabilities have increased from -£6,028 in 2023 to -£9,268 in 2024, indicating ongoing erosion of equity and accumulated losses.
• High Long-Term Debt: Bank loans of approximately £46,633 remain high and stable relative to total assets, signifying a substantial financial burden given the company's size.
• Declining Operational Scale: Average employees reduced from 7 to 5, coupled with decreasing fixed asset value and low cash balances in prior years, suggesting operational contraction or efficiency challenges.

3. Positive Indicators:

• Current Asset Improvement: Current assets increased significantly to £28,050 in 2024 from £9,390 in 2023, largely driven by improved cash (£18,600 in 2024 vs £440 in 2023) and higher inventory, which may enhance liquidity in the short term.
• No Overdue Filings: The company is current on statutory accounts and confirmation statement filings, demonstrating compliance with regulatory requirements.
• Stable Control and Governance: Ownership and director appointments are clear and consistent, with no records of disqualification or governance issues.

4. Due Diligence Notes:

• Investigate the nature and terms of the bank loans to understand repayment schedules, interest rates, and covenant compliance risks.
• Review the company's cash flow statements and profit & loss accounts (not filed publicly) to assess operational profitability and cash generation trends.
• Assess the sustainability of inventory levels and debtor collections given the industry risks and recent changes in current assets.
• Confirm any contingent liabilities or off-balance sheet obligations that may exacerbate financial risk.
• Engage with management regarding plans to restore equity and reduce debt, including potential capital injections or restructuring.