Company Number: 13478336

Analysis Date: 2025-07-20 11:25 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net current liabilities increasing markedly in the latest financial year, alongside a small net asset base. The micro-entity scale and absence of an audit limit visibility, increasing risk for investors.

2. Key Concerns:

• Deteriorating Liquidity: Net current assets declined from a positive £3,450 in 2023 to a negative £16,358 in 2024, driven by a tripling of short-term liabilities (£9,623 to £30,657), indicating potential cash flow stress.
• Thin Net Assets and Equity: Net assets and shareholders’ funds remain minimal (£2,205 in 2024), which offers limited cushion against operational or financial shocks.
• Director Advances and Related Party Transactions: Director balances remain negative (£2,848 owed to director at year end) with some repayments but ongoing advances, posing a governance and financial risk. Transparency on these transactions is critical.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements.
• Stable Ownership and Management: Single director and 100% owner are consistent; no changes or disqualifications reported, suggesting governance stability at the management level.
• Fixed Assets Addition: The company acquired fixed assets (£27,963) in 2024, which may reflect investment in operations or capacity, though the impact on cash flow should be assessed.

4. Due Diligence Notes:

• Investigate the nature and terms of the increased current liabilities causing the liquidity squeeze—are these trade payables, loans, or accruals?
• Review the director’s advances and repayments schedule and any potential conflicts or financial dependencies on the director.
• Obtain more detailed cash flow information to assess operational sustainability and whether the fixed asset acquisition was financed by debt or cash reserves.
• Confirm whether the company has any contingent liabilities or off-balance-sheet obligations not reflected in the micro-entity accounts.
• Evaluate business plan and revenue streams to understand prospects for reversing the current negative working capital trend.