Company Number: 14267080

Analysis Date: 2025-07-20 18:35 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (£-18,812) as of 31 August 2024, indicating solvency risk. Despite positive net current assets, it carries long-term liabilities of £40,000 which exceed total assets less current liabilities, signaling potential financial distress.

2. Key Concerns:

• Negative Net Assets: The company's total net liabilities surpass its assets, which questions its ability to meet long-term obligations.
• Long-Term Debt Level: £40,000 creditors falling due after more than one year is significant relative to the company’s asset base and equity.
• Declining Current Assets: Current assets decreased from £40,393 in 2023 to £33,597 in 2024, reducing liquidity buffers.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statement filings are up to date, showing compliance with statutory requirements.
• Stable Employee Base: The company maintains a small but consistent workforce (2 employees), indicating operational continuity.
• Micro-Entity Status: Simplified reporting requirements and relatively small scale may reduce administrative burdens and complexity.

4. Due Diligence Notes:

• Clarify the nature and terms of the £40,000 long-term liabilities, including repayment schedule and covenants.
• Obtain cash flow statements or management accounts to assess actual liquidity and operational cash generation.
• Investigate the business model sustainability and revenue trends since incorporation in 2022, given limited financial history.
• Confirm if there are any director or related party loans that may impact the financial structure.
• Review any contingent liabilities or off-balance sheet obligations not reflected in the accounts.