Company Number: 12718458

Analysis Date: 2025-07-20 19:14 UTC

1. Risk Rating: HIGH
   The company shows significant solvency and liquidity concerns evidenced by persistent negative net current assets exceeding £600k and negative shareholders' funds. This indicates inability to cover short-term liabilities and an overall deficit in equity, posing a high risk to creditors and investors.

2. Key Concerns:

• Negative Working Capital: Current liabilities exceed current assets by a large margin (£618,881 net current liabilities in 2023), indicating potential cash flow difficulties to meet short-term obligations.
• Negative Shareholders' Funds: Shareholders’ funds remain negative (£-3,684 in 2023), though slightly improved from previous years, underscoring ongoing accumulated losses or capital erosion.
• Concentration of Control: Two individuals hold 75-100% share ownership and voting rights, which may raise governance and minority investor concerns due to limited oversight or checks and balances.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are filed on time, demonstrating regulatory compliance and good administrative practices.
• Stable Fixed Assets: Fixed assets have been maintained around £610k-£615k over recent years, suggesting some underlying asset base that could potentially support operations or be leveraged.
• Active Status with Continuing Operations: The company remains active since incorporation in 2020 with ongoing director engagement and no insolvency proceedings.

4. Due Diligence Notes:

• Investigate the nature and liquidity of fixed assets to assess realizable value and potential for asset-based financing or sale.
• Review detailed cash flow statements and creditor aging schedules to understand working capital management and payment practices.
• Examine the business model and revenue streams given the SIC codes spanning IT services, freight transport, and civil engineering to evaluate operational sustainability and diversification.
• Assess director and shareholder arrangements for potential risks related to related party transactions or governance issues.
• Confirm no contingent liabilities or pending legal issues that could exacerbate financial strain.