Company Number: 13531512

Analysis Date: 2025-07-20 13:58 UTC

1. Risk Rating: HIGH
   The company shows significant solvency and liquidity concerns due to current liabilities vastly exceeding current assets, resulting in a large negative net current assets figure. This is a critical red flag for financial stability despite positive net assets.

2. Key Concerns:

• Liquidity Mismatch: Current liabilities of £925,481 against current assets of only £124,989 in 2024 indicate potential cash flow difficulties in meeting short-term obligations.
• High Fixed Asset Base Relative to Equity: Fixed assets (~£918k) are disproportionately high compared to net assets (£117,567), suggesting potential illiquidity and risk if asset realization is needed.
• Declining Employee Count: Reduction from 8 employees in 2023 to 5 in 2024 may signal operational downsizing or cost-cutting, possibly reflecting business challenges.

3. Positive Indicators:

• Growth in Net Assets: Net assets more than doubled from £54,200 in 2023 to £117,567 in 2024, indicating some improvement in overall financial position.
• No Overdue Filings: Accounts and confirmation statements are filed on time, reflecting regulatory compliance and governance discipline.
• Stable Ownership and Management: Company controlled by a single significant controller (Mr. Farooq Osmani) with stable director appointments since incorporation.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities causing high short-term debt to understand if refinancing or payment issues exist.
• Assess cash flow statements and profit/loss data (not provided) to verify operational viability and ability to service debts.
• Clarify composition and liquidity of fixed assets to evaluate realizable value in distress scenarios.
• Understand reasons behind staff reduction and whether it impacts business sustainability.
• Confirm no director disqualifications or related party transactions that could affect governance.