Company Number: 12602064

Analysis Date: 2025-07-20 14:18 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits net liabilities of £9,420 as of the latest financial year end, a significant deterioration from positive net assets in previous years. Current liabilities exceed current assets, resulting in negative net current assets (-£646), indicating potential short-term liquidity issues. The presence of bank loans amounting to £8,774 classified as long-term creditors also raises solvency concerns.

2. Key Concerns:

• Negative shareholders' funds and net liabilities indicate the company is insolvent on a balance sheet basis as of the latest accounts.
• Very limited cash availability (£4) versus current liabilities (£650) suggests potential liquidity constraints to meet immediate obligations.
• Deterioration from prior years’ positive net assets and working capital to negative figures in the latest year may signal operational or financial distress.

3. Positive Indicators:

• The company is current with its statutory filings, with no overdue accounts or confirmation statements, indicating compliance with regulatory requirements.
• The business has been operational since 2020 and maintains an appointed director with a stable occupancy.
• The company benefits from exemption from audit, reducing administrative burden and costs.

4. Due Diligence Notes:

• Investigate the reasons for the sharp decline in net assets from £481 in 2023 to negative £9,420 in 2024, including any extraordinary expenses, write-offs, or losses.
• Review cash flow statements and management accounts to assess ongoing liquidity and operational cash generation capacity.
• Confirm terms and repayment schedules of the bank loans (£8,774) and any potential cross-default or covenant risks.
• Assess whether the company has any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Enquire about ongoing business activities given the SIC codes include cleaning, taxi operations, and miscellaneous services, to understand revenue sources and sustainability.