Company Number: 13036334

Analysis Date: 2025-07-20 12:34 UTC

1. Risk Rating: HIGH
   The financial data indicates persistent and significant net current liabilities exceeding £243,000 each year, which signals a liquidity shortfall. The net assets are minimal and fixed assets are illiquid, raising concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Severe Negative Working Capital: Current liabilities vastly exceed current assets (e.g., 2023: £159 vs. £243,614), indicating potential cash flow stress.
• Minimal Net Assets and Equity: Shareholders' funds are low (£2,349 in 2023) relative to liabilities, suggesting weak capital buffer for creditors or investors.
• Dependence on Fixed Assets: While fixed assets (~£247k) are consistent, these are not readily convertible to cash, limiting operational flexibility in times of financial distress.

3. Positive Indicators:

• Filing Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Stable Management Team: The same three directors have been in place since incorporation, suggesting stable leadership.
• Company Status Active and Not in Liquidation: Despite financial strain, the company remains active and is not under administration or liquidation.

4. Due Diligence Notes:

• Examine Nature of Current Liabilities: Identify composition and maturity profile of short-term debts to assess risk of default or refinancing needs.
• Cash Flow Analysis: Review detailed cash flow statements or bank statements to evaluate operational cash generation or reliance on external funding.
• Fixed Asset Valuation and Liquidity: Confirm whether fixed assets are encumbered or can be liquidated to meet liabilities if necessary.
• Directors’ Commentary and Future Plans: Obtain management’s outlook and strategy to address liquidity issues and improve financial stability.
• Related Party Transactions: Investigate any transactions with directors or related entities that could impact financial position.