Company Number: 12776305

Analysis Date: 2025-07-20 18:26 UTC

1. Risk Rating: MEDIUM

The company exhibits some solvency and liquidity concerns due to persistent net current liabilities and declining net assets, but it remains an active business with no overdue filings or signs of regulatory non-compliance.

2. Key Concerns:

• Negative Net Current Assets: Consistently negative working capital over the last five years, with net current liabilities increasing to £5,511 as of March 2024, indicating potential short-term liquidity stress.
• Declining Net Assets: Net assets have decreased from £3,836 in 2023 to £1,094 in 2024, suggesting erosion of the company’s equity base.
• Long-term Creditors: The company's creditors due after more than one year stand at £12,078, which is significant relative to net assets and may imply reliance on external financing.

3. Positive Indicators:

• Timely Compliance: All accounts and confirmation statements have been filed on time, reflecting good regulatory compliance and governance.
• Stable Management: The company has a single director with consistent tenure since incorporation, which can indicate stable leadership.
• Modest Asset Base: The company holds tangible fixed assets (£18,683 in 2024), which may provide some collateral value.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess refinancing risk and covenant compliance.
• Review cash flow statements and bank facilities to evaluate liquidity management and ability to meet short-term obligations.
• Confirm whether the company has any contingent liabilities or off-balance sheet exposures.
• Understand the company’s business model and revenue trends to assess operational sustainability given the micro-entity status and low employee count.
• Verify director background and any related party transactions given the single director structure.