Company Number: 14184107

Analysis Date: 2025-07-29 18:24 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, evidenced by negative net current assets and minimal net assets, which raises substantial risk regarding its ability to meet short-term obligations.

2. Key Concerns:

• Negative net current assets (£-1,048) as of 30 June 2024 indicate liquidity stress and potential difficulties in covering short-term liabilities.
• Minimal net assets (£3) and shareholders’ funds suggest very limited equity buffer to absorb financial shocks or losses.
• The company has only one employee and minimal fixed assets, signaling limited operational scale and potential vulnerability to business disruptions.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines, showing regulatory adherence and up-to-date statutory obligations.
• Ownership and management are consolidated under a single director and majority shareholder, which may allow for swift decision-making and control.
• The company operates within the advertising agency sector, which can have relatively low fixed asset requirements, somewhat mitigating capital intensity concerns.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp decline in current assets from £1,175 in 2023 to £263 in 2024 and the corresponding increase in current liabilities.
• Review cash flow statements and any available management accounts to assess short-term liquidity and operational cash generation.
• Clarify the company's revenue streams, profitability, and client base to evaluate operational sustainability beyond the balance sheet snapshot.
• Confirm no undisclosed contingent liabilities or related party transactions that might further impact financial stability.
• Consider the director’s experience and ability to manage turnaround or growth given the company’s current financial position.