Company Number: 14281987

Analysis Date: 2025-07-29 19:36 UTC

1. Risk Rating: MEDIUM
   The company demonstrates a material turnaround from net liabilities in 2023 to net positive equity in 2024, indicating improving financial health. However, the relatively modest net asset base (£23,881) and current liabilities (£87,434) compared to current assets (£107,249) suggest limited cushion against adverse events. The company’s young age and limited operational history also introduce uncertainty.

2. Key Concerns:

• Past Negative Equity: The company reported net liabilities of approximately £39,877 in 2023, indicating prior solvency challenges that have only recently been reversed.
• Modest Net Assets: Although positive, net assets are low, implying limited financial buffer for unexpected expenses or downturns.
• Dependence on Short-Term Borrowings: Other borrowings within current liabilities represent a significant portion (£56,337 of £87,434), which may pressure liquidity if not managed or refinanced appropriately.

3. Positive Indicators:

• Improved Financial Position: The company moved from net liabilities to net assets within one year, showing operational improvements or injection of capital.
• Strong Cash Position: Cash at bank increased substantially from £1,910 to £84,274, supporting short-term liquidity.
• No Overdue Filings: Both accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and good governance.

4. Due Diligence Notes:

• Verify the source of the enhanced cash balance and whether this is sustainable (e.g., capital injection, loans, or operational cash flow).
• Investigate the nature and terms of the “other borrowings” classified as current liabilities to assess refinancing risks or potential covenant breaches.
• Review turnover, profitability, and cash flow trends outside of the balance sheet to evaluate operational sustainability since the profit and loss account is not included in the filing.
• Confirm director and shareholder structure for any related party transactions or reliance on key individuals, given the company’s small size and recent formation.