Company Number: 13048602

Analysis Date: 2025-07-20 12:22 UTC

1. Risk Rating: HIGH
   The company shows significant deterioration in net assets and liquidity over recent periods, with a net asset value just under £16k against substantial liabilities. The sharp decline in fixed assets and increased short-term creditor pressure raise solvency concerns.

2. Key Concerns:

• Declining Net Assets: Net assets decreased from £25,105 in 2023 to £15,992 in 2024, indicating erosion of equity and potential losses.
• Liquidity Strain: Negative net current assets (£-23,597) in 2024 suggest insufficient short-term assets to cover current liabilities (£48,303), signaling cash flow risk.
• High Long-Term Creditors: Creditors due after one year remain substantial at £106,011, which may pressure future cash outflows and solvency.

3. Positive Indicators:

• Timely Filings: No overdue accounts or confirmation statements; compliance with regulatory filing deadlines is maintained.
• Micro-Entity Status: Lower reporting complexity and limited staff reduce administrative burden and cost.
• Stable Employment: Consistent number of employees (2) indicates operational continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of both current and long-term liabilities to assess repayment schedules and refinancing risks.
• Review cash flow statements and recent operational performance to evaluate liquidity management and business sustainability.
• Clarify reasons behind the significant reduction in fixed assets from £348,925 (2023) to £145,600 (2024) to understand asset disposals or impairments.
• Confirm director background and any related party transactions given the small scale and close director involvement.