Company Number: 12944516

Analysis Date: 2025-07-20 16:26 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by persistent net current liabilities and negative shareholders' funds exceeding £20,000. This level of net liabilities relative to very limited share capital indicates a financially distressed position.

2. Key Concerns:

• Persistent Negative Net Assets: The company has reported negative net assets for four consecutive years, with a worsening position from £7,553 positive in 2020 to -£20,696 in 2024.
• Liquidity Constraints: Current liabilities consistently exceed current assets by a wide margin (e.g., £23,846 liabilities vs. £3,150 assets in 2024), indicating likely cash flow difficulties and potential inability to meet short-term obligations.
• Reliance on Director Confidence: The director’s statement about going concern contradicts the financial realities and should be treated cautiously. No audit performed reduces transparency on this assertion.

3. Positive Indicators:

• Compliance with Filing Requirements: All accounts and confirmation statements are filed on time and no overdue filings are noted.
• Small Company Reporting: The company is classified as small, with simplified accounting which reduces administrative burden.
• Industry Activity: The company operates in computer and peripheral equipment repair (SIC 95110), a niche with ongoing demand, which could support future recovery if operational issues are addressed.

4. Due Diligence Notes:

• Investigate the nature and maturity of current liabilities to assess any imminent repayment pressures or restructuring plans.
• Review cash flow forecasts and operational strategies to verify the director's going concern assertion and business viability.
• Examine any contingent liabilities or off-balance-sheet obligations that may exacerbate financial risk.
• Consider the background and financial commitment of the new director appointed in 2023, including any capital injections or strategic changes since the leadership transition.
• Confirm whether any related party transactions or director loans exist that influence the financial position.