Company Number: 13488895

Analysis Date: 2025-07-29 19:13 UTC

1. Risk Rating: HIGH
   The company’s solvency and liquidity position as of the latest financial year-end (2024-06-30) is extremely weak, with net current assets of only £100 and cash reserves at £1,903 against current liabilities of £1,803. The drastic decline from prior years’ net current assets (£9,810 in 2023 and £10,430 in 2022) signals significant financial deterioration. This limited working capital suggests the company may struggle to meet short-term obligations, raising a high solvency risk.

2. Key Concerns:

• Severe depletion of liquidity: Cash dropped from over £10k in 2022 to under £2k in 2024, indicating potential cash flow stress.
• Minimal net assets: Net assets fell sharply to just £100, eroding the equity buffer, which puts the company at risk if liabilities increase or revenue drops.
• Limited financial transparency: Accounts are abridged and unaudited, restricting the ability to fully assess operational performance and risk exposures.

3. Positive Indicators:

• Compliance with filing deadlines: The company is up to date with both accounts and confirmation statement filings, indicating regulatory compliance and governance diligence.
• Single controlling shareholder/director: This may allow for swift decision-making and potentially stable leadership without governance conflicts.
• Active status with no liquidation or administration: The company remains operational and has no formal insolvency proceedings underway.

4. Due Diligence Notes:

• Verify the reason for the steep decline in cash and net assets over the last two years, including detailed cash flow analysis.
• Request unaudited or audited full accounts and profit & loss statements to understand operational sustainability and profitability trends.
• Investigate whether the company has any contingent liabilities, related party transactions, or off-balance sheet obligations not apparent in abridged accounts.
• Assess the nature and duration of contracts or revenue streams in the engineering design and freight transport sectors to evaluate future income stability.
• Confirm the share capital and equity structure, as there appears to be inconsistency in share capital reporting within the accounts document.