Company Number: 12646371

Analysis Date: 2025-07-29 14:25 UTC

1. Risk Rating: MEDIUM

The company shows ongoing negative net current assets, indicating liquidity constraints, although net assets remain positive. The small scale and micro-entity reporting limit transparency on profitability and cash flow, increasing uncertainty about operational stability.

2. Key Concerns:

• Consistent negative net current assets over multiple years (2021-2024), suggesting potential challenges meeting short-term liabilities without relying on long-term funding.
• Declining fixed assets from £50,365 (2023) to £33,576 (2024) may indicate asset disposals or depreciation that are not offset by asset acquisitions.
• Minimal share capital (£10) and modest net assets (£3,057) provide limited financial buffer against operational risks.

3. Positive Indicators:

• Company status is active with no overdue filings, indicating compliance with regulatory requirements.
• Shareholders’ funds have increased slightly from £2,268 in 2023 to £3,057 in 2024, showing some equity growth.
• The company is small with only two employees, which can imply lower fixed costs and potentially greater operational flexibility.

4. Due Diligence Notes:

• Investigate cash flow statements and profit and loss accounts (not filed publicly) to better assess liquidity and profitability.
• Clarify the nature and terms of long-term liabilities (£15,048 in 2024) to understand repayment obligations and refinancing risks.
• Review management plans for addressing persistent working capital deficits and asset reductions.
• Evaluate the directors' track record and governance practices, considering ownership concentration (one PSC with 75-100% shares).