ENRIK19 TALLTREES. LIMITED

Executive Summary

Enrik19 TallTrees. Limited faces high financial risk due to a marked deterioration in liquidity and net assets over the last year, compounded by dependence on director loans for funding. While regulatory filings are current and management stable, the company’s negative working capital and shrinking equity base raise concerns about its ability to sustain operations without additional capital or operational turnaround. Further detailed financial and operational due diligence is recommended.

ENRIK19 TALLTREES. LIMITED - Analysis Report

Company Number: 12448228

Analysis Date: 2025-07-29 20:51 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity and solvency concerns evidenced by negative net current assets and a steep decline in net assets from £4,163 in 2023 to £231 in 2024. The reliance on director’s loans to fund operations further heightens financial risk.

2. Key Concerns:

• Deteriorating Liquidity Position: In 2024, net current liabilities stand at £1,059 compared to net current assets of £2,645 in 2023, indicating potential short-term cash flow difficulties.
• Substantial Decline in Net Assets: Net assets have plummeted by approximately 94% year-on-year, from £4,163 to £231, reflecting erosion of shareholder value and possible operational losses.
• Director’s Loan Dependency: The company’s debtors include a significant balance (£4,007) corresponding to amounts owed by the director, which is interest free and repayable on demand, suggesting reliance on informal funding rather than external finance or operational cash flow.

3. Positive Indicators:

• Timely Filing Compliance: Annual accounts and confirmation statements are up to date, indicating good regulatory compliance and governance discipline.
• Stable Director and Ownership: Single director with consistent appointment since incorporation; no changes or disqualifications reported, which suggests stable management at least in terms of continuity.
• No Audit Requirement: Small company exemption from audit may reduce administrative burden, although this limits external scrutiny.

4. Due Diligence Notes:

• Investigate the underlying cause of the sharp decline in net assets and whether the company is generating operating losses or incurring exceptional expenses.
• Review the nature and terms of the director’s loan, including any risks related to its recoverability and impact on company solvency.
• Assess the company’s cash flow forecasts and ability to meet short-term liabilities given the negative working capital position.
• Verify absence of contingent liabilities or legal issues not disclosed in the accounts that may further impair financial stability.