Company Number: 13262757

Analysis Date: 2025-07-20 16:56 UTC

1. Risk Rating: HIGH
   Justification: The company shows a very low net asset base (£1,030 as of 31 March 2024) combined with substantial long-term liabilities (£33,111) exceeding current assets, indicating potential solvency concerns. The micro-entity scale and limited financial history further constrain assessment.

2. Key Concerns:

• Solvency Risk: Net assets have declined from £5,822 in 2021 to £1,030 in 2024, with creditors due after one year exceeding total assets less current liabilities, suggesting potential difficulty meeting long-term obligations.
• Liquidity Issues: Although net current assets are positive (£16,553), the relatively small current asset base (£17,804) compared to long-term creditors could stress liquidity if refinancing is required.
• Operational Scale and Stability: The company operates with only two employees and minimal share capital (£100), reflecting a small operational footprint that may limit resilience to market or operational shocks.

3. Positive Indicators:

• Timely Filing and Compliance: No overdue filings and accounts submitted on time indicate good regulatory compliance to date.
• Stable Director and Ownership: A single director and 75-100% shareholder control by Mr. Basharat Hussain suggests clear governance and decision-making authority.
• Consistent Asset Base: Fixed assets have remained relatively stable over the years, indicating some continuity in operational capacity.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities (£33,111) to assess refinancing risk and creditor relationships.
• Obtain management accounts or cash flow forecasts to evaluate short-term liquidity and operational cash generation beyond year-end snapshots.
• Review the company’s business model and client base in the hydrographics/motor vehicle parts sector to assess revenue sustainability and market risks.
• Confirm any contingent liabilities or off-balance sheet obligations not reflected in micro-entity accounts.
• Verify director’s credit and legal background to rule out governance or reputational risks.