Company Number: NI668600

Analysis Date: 2025-07-29 20:08 UTC

1. Risk Rating: MEDIUM
   The company shows a recent turnaround from negative net assets in 2023 (-£28,973) to positive net assets (£3,150) in 2024, indicating some recovery. However, the very low equity base and the presence of significant long-term liabilities (£46,271) relative to net assets suggest solvency concerns. The micro-entity scale limits detailed financial insight.

2. Key Concerns:

• Solvency Risk: The company had a substantial deficit in 2023 and only modest positive net assets in 2024, with sizeable long-term creditors exceeding net assets by a wide margin. This raises questions about the ability to meet long-term obligations.
• Liquidity and Working Capital Volatility: A large improvement in net current assets from -£5,230 (2023) to £45,928 (2024) is notable but may reflect timing or classification changes rather than sustainable cash flow strength.
• Thin Capitalisation and Small Equity Base: Share capital is minimal (£100) and shareholders’ funds remain very low (£3,150), indicating limited financial buffer to absorb shocks or fund growth.

3. Positive Indicators:

• Improved Net Current Assets: The company has moved to a strong positive net current asset position in 2024, suggesting better short-term liquidity.
• Consistent Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and governance diligence.
• Stable Management: The same director has been in place since incorporation, which may suggest stable leadership.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities (~£46k), including repayment schedules and creditor identity.
• Review cash flow statements or bank statements if available to confirm whether the liquidity improvement is sustainable or due to timing.
• Clarify the company’s revenue, profitability, and business model details beyond balance sheet figures to assess operational sustainability.
• Confirm whether any related party transactions or contingent liabilities exist that might affect financial stability.
• Verify the accuracy and completeness of the financial data, given some fluctuations and the micro-entity filing basis.