Company Number: 13115975

Analysis Date: 2025-07-20 12:40 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk with negative net assets and net current liabilities worsening year-on-year. Current liabilities exceed current assets by a large margin, indicating liquidity challenges. Despite operational continuity, financial instability is evident.

2. Key Concerns:

• Negative Shareholders' Funds: The company’s net liabilities increased from approximately £94k in 2023 to £151k in 2024, signaling erosion of capital and accumulated losses.
• Liquidity Shortfall: Net current liabilities stand at around £185k, reflecting insufficient short-term assets to cover obligations, which may pose cash flow difficulties.
• Reliance on Director Loans and Bank Facilities: A significant portion of current liabilities includes £130k loans from directors and £279k bank loans/overdrafts, which might imply dependency on external/internal financing to sustain operations.

3. Positive Indicators:

• Consistent Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating adherence to statutory requirements.
• Stable Operational Footprint: Employee count remained steady at 8, and no changes in directors or company status suggest operational continuity.
• Intangible Assets Held Steady: Intangible assets remain stable at £24k, possibly reflecting some ongoing investment in proprietary resources or technology.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans and bank facilities to assess sustainability and refinancing risk.
• Review debtor aging and collectability given high trade debtors (£285k), to evaluate true liquidity position.
• Obtain management accounts or cash flow forecasts to understand current cash generation and ability to meet liabilities.
• Clarify reasons for persistent losses and negative equity, including market conditions and business model viability in the temporary employment sector.
• Confirm absence of contingent liabilities or off-balance sheet obligations that could exacerbate financial stress.