Company Number: 13247681

Analysis Date: 2025-07-20 17:38 UTC

1. Risk Rating: HIGH

The company exhibits a high risk profile primarily due to significant liquidity and solvency concerns evidenced by large current liabilities far exceeding current assets, resulting in substantial negative net working capital over multiple years despite small improvements.

2. Key Concerns:

• Liquidity Deficit: Current liabilities (£218,594 at 31/03/2024) vastly exceed current assets (£27,807), creating a net current liability position of -£190,787, indicating potential cash flow difficulties meeting short-term obligations.
• Reliance on Fixed Asset Investments: The company holds a large fixed asset investment (£213,650) that may not be readily liquidated to cover liabilities, increasing risk if cash inflows are insufficient.
• Negative Historical Equity and Small Share Capital: Shareholders’ funds are very low (£22,863) with historical periods showing negative equity, coupled with nominal issued share capital (£20), suggesting limited financial buffer and capital base.

3. Positive Indicators:

• Consistent Filing and Compliance: Accounts and confirmation statements are filed on time with no overdue filings, indicating good regulatory compliance.
• Going Concern Assertion: Directors have stated a reasonable expectation of continuing operations, suggesting management confidence in business sustainability.
• Small Workforce: The company employs only 2 people, which may help maintain lower fixed costs.

4. Due Diligence Notes:

• Investigate the nature and realizability of the fixed asset investments (£213,650) to assess if they can be converted to cash if needed.
• Review the company's cash flow statements and bank arrangements to understand how short-term liabilities are managed given the negative net working capital.
• Assess contract pipeline and revenue projections to validate directors’ going concern assumptions.
• Examine director backgrounds and any related-party transactions given the small capital base and substantial liabilities.
• Verify whether any contingent liabilities or off-balance sheet risks exist that may impact solvency.