Company Number: 13537532

Analysis Date: 2025-07-20 17:19 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position (-£22,039) and significant long-term liabilities (£23,018) exceeding total assets. Negative working capital (-£10,218) indicates liquidity strain. These factors suggest solvency and liquidity risks, raising concerns over the company’s ability to meet obligations.

2. Key Concerns:

• Negative net assets and shareholders’ funds indicate accumulated losses and potential insolvency risk.
• Current liabilities (£19,396) significantly exceed current assets (£9,178), signaling liquidity concerns and potential cash flow difficulties.
• Presence of long-term creditors (£23,018) without clear sourcing or repayment plans raises doubts on financial sustainability.

3. Positive Indicators:

• The company has tangible fixed assets (£11,197) that may provide some collateral value.
• Cash balance improved from £100 last year to £6,004, showing some enhancement in cash holdings.
• No overdue filings or compliance issues; accounts and confirmation statements are up to date.
• The company is active with an operational presence and six employees, indicating ongoing business activity.

4. Due Diligence Notes:

• Investigate the nature and terms of the £23,018 long-term liabilities to assess repayment risk and creditor relationships.
• Review the company’s recent cash flows, turnover, and profitability metrics (not disclosed here) to evaluate operational viability.
• Examine the director’s plans to address negative equity and liquidity shortfalls, including capital injections or restructuring.
• Confirm any contingent liabilities or off-balance sheet obligations that may exacerbate financial stress.
• Evaluate the impact of director changes, especially the resignation of Mr. Adil Niazi, on governance and business continuity.