Company Number: 12805327

Analysis Date: 2025-07-29 20:17 UTC

1. Risk Rating: HIGH
   The company shows significant negative net current assets and net liabilities, indicating solvency concerns and potential inability to meet short-term obligations.

2. Key Concerns:

• Negative net current assets of £27,871 as of 31 August 2024, worsening from £20,101 the prior year, signaling deteriorating liquidity.
• Consistent net liabilities position over the last two financial years, indicating ongoing financial strain.
• Very low current assets (£2,804) relative to current liabilities (£30,675) as of the latest accounts, raising concerns about cash flow and operational sustainability.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines for accounts and confirmation statements, suggesting no regulatory compliance issues.
• Despite financial difficulties, the director has maintained the company since incorporation with no evident disqualifications or governance red flags.
• The company operates in sectors (wholesale of intermediate products and waste material recovery) that may have stable demand, although no revenue data is provided.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to assess risk of imminent creditor action or insolvency proceedings.
• Review cash flow statements and turnover data (not available here) to understand operational cash generation and sustainability.
• Confirm whether the company has any contingent liabilities or off-balance sheet obligations.
• Validate the reason for the sharp decline in current assets from prior years and whether this signals asset disposals or other financial stress.
• Examine director's plans or restructuring efforts in response to the negative working capital position.