Company Number: 14459300

Analysis Date: 2025-07-29 12:24 UTC

1. Risk Rating: MEDIUM
   The company shows current liabilities exceeding current assets as of the latest year-end, indicating potential liquidity pressures. However, it remains active with no overdue filings, and shareholder funds are positive albeit minimal.

2. Key Concerns:

• Liquidity Shortfall: Net current liabilities of £1,479 at 30 Nov 2024 compared to net current assets of £1,334 the previous year suggest worsening short-term liquidity. Cash is modest at £9,412 relative to current liabilities of £24,424.
• Small Equity Base: Shareholders’ funds have decreased significantly from £3,319 (2023) to £55 (2024), signaling erosion of retained earnings or accumulated losses.
• Concentration of Control and Dividend Payments: The sole director and 100% shareholder has taken significant dividends (£45,800 in 2024), which may impact reinvestment capacity and financial stability.

3. Positive Indicators:

• Compliance: No overdue accounts or confirmation statements indicate good regulatory compliance and governance discipline.
• Operating Continuity: The company remains active and appears to have ongoing trade debtors (£11,836), suggesting continued business operations.
• Director Repayment: The director loaned funds to the company during the year and this was repaid post year-end, showing some financial support from management.

4. Due Diligence Notes:

• Investigate the causes of the sharp decline in net assets and whether this relates to operational losses or other one-off charges.
• Review cash flow statements and forecasts to assess the company’s ability to meet short-term obligations and manage working capital.
• Confirm the sustainability of dividend policy given the low equity base and liquidity position.
• Assess the nature and terms of the director’s loan and any other related party transactions for financial impact and governance considerations.