Company Number: 12926473

Analysis Date: 2025-07-29 14:37 UTC

1. Risk Rating: HIGH
   The company's financials reveal substantial and growing negative net current assets and shareholders' funds, indicating a significant solvency risk. Current liabilities vastly exceed current assets, and there is a heavy reliance on director loans, raising concerns about liquidity and financial stability.

2. Key Concerns:

• Solvency Risk: Negative shareholders' funds of £123,318 (2023) worsening from £78,958 (2022) highlight ongoing losses and potential inability to meet long-term obligations.
• Liquidity Concerns: Current liabilities of £255,694 against minimal current assets (£1,940) and cash (£590) indicate severe working capital shortages and cash flow constraints.
• Reliance on Director Loan: Over £255k owed to a director, a substantial portion of liabilities, suggests dependence on related party funding which may not be sustainable or easily recoverable.

3. Positive Indicators:

• Active Operations: The company is actively trading with an up-to-date confirmation statement and accounts filed on time, indicating regulatory compliance.
• Tangible Fixed Assets: The company holds tangible fixed assets with a net book value of £130,436, showing investment in operational infrastructure.
• Going Concern Statement: The director has confirmed ongoing financial support, which may provide short-term stability.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loan including repayment schedule and security.
• Review cash flow forecasts and management plans to address the negative working capital position.
• Confirm trading performance and profitability trends beyond balance sheet snapshots, including turnover and margins.
• Assess potential risks related to the concentration of control between two PSCs, especially with a director having resigned in 2022.
• Verify absence of any overdue filings or regulatory issues beyond what is reported.