Company Number: 12939078

Analysis Date: 2025-07-29 12:50 UTC

1. Risk Rating: HIGH

Justification: The company shows a significant decline in net current assets and shareholders' funds from £16,825 in 2023 to only £1,537 in 2024, with cash balances sharply reduced from £41,173 to £17,857. Current liabilities remain high relative to current assets, and there is a substantial corporation tax creditor of £13,360 in 2024, indicating potential liquidity stress and solvency concerns.

2. Key Concerns:

• Liquidity deterioration: Cash and current assets have substantially decreased over the last year while current liabilities remain sizeable, suggesting cash flow constraints.
• Rising tax liabilities: Corporation tax creditor reduced from £27,941 to £13,360 but remains significant, which could indicate delayed tax payments or disputes.
• Equity erosion: Shareholders’ funds have sharply declined, reflecting either losses or distributions that may threaten ongoing operational stability.

3. Positive Indicators:

• Timely filing: The company’s accounts and confirmation statements are up-to-date with no overdue filings, indicating regulatory compliance.
• No audit exemption: The company files under the small companies regime with total exemption from audit, appropriate given size.
• Stable director presence: Single director in place since incorporation, suggesting consistent management.

4. Due Diligence Notes:

• Investigate the cause of the sharp decrease in cash and net current assets between 2023 and 2024.
• Review profit and loss accounts (not included) to assess operating profitability, especially to understand the equity decline.
• Clarify the nature and timing of corporation tax liabilities and whether payment plans or disputes exist.
• Confirm if there are any undisclosed contingent liabilities or related party transactions impacting financial health.
• Understand client base and contract stability given the SIC code for private security activities.