Company Number: 13881052

Analysis Date: 2025-07-20 12:41 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent negative net current assets over the last three reported years, indicating liquidity challenges. Current liabilities consistently exceed current assets by a substantial margin (£41,549 in 2024), raising concerns about the company’s ability to meet short-term obligations. The company is very young (incorporated in 2022) with minimal employee count and very limited equity base (£13,029), which heightens insolvency risk.

2. Key Concerns:

• Liquidity Deficit: Negative working capital each year suggests cash flow pressure and potential difficulty in settling short-term debts.
• Limited Scale and Operational Base: Micro-entity status with only one employee and small asset base may limit operational resilience and growth prospects.
• Concentration of Control: Single shareholder/director with 75-100% ownership concentrates operational and governance risk, reducing checks and balances.

3. Positive Indicators:

• Compliance: The company is current with all filings (accounts and confirmation statements), indicating regulatory compliance and management attentiveness to statutory obligations.
• Incremental Equity Growth: Net assets have increased from £7,040 in 2023 to £13,029 in 2024, suggesting some capital injection or retained earnings improvement.
• Clear Industry Focus: Wholesale trade in machinery and selected food products may offer diversified revenue streams if managed effectively.

4. Due Diligence Notes:

• Examine detailed cash flow statements and creditor aging reports to assess short-term liquidity management and payment patterns.
• Investigate the nature of current liabilities to understand if these are trade payables, short-term borrowings, or other obligations.
• Review contracts or agreements with suppliers/customers to evaluate revenue stability and potential for scaling.
• Assess director’s track record and financial support capacity, given the concentrated control and limited equity.
• Confirm whether there are any contingent liabilities or off-balance sheet exposures not reflected in the filings.