Company Number: 13037257

Analysis Date: 2025-07-19 12:45 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, with net liabilities worsening from approximately £30k in 2022 to over £55k in 2023. Current liabilities are substantially higher than current assets, indicating acute liquidity issues.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company’s net assets and shareholders’ funds are both deeply negative (£-55,332), reflecting accumulated losses and eroded equity.
• Severe Working Capital Deficit: Net current assets stand at a negative £90,772, with current liabilities more than four times the cash balance (£9,853 cash vs. £118,109 liabilities), signaling potential cash flow constraints.
• Rising Creditors and Provisions: Creditors due within one year increased to £118,109 from £71,331 the prior year, alongside a notable rise in provisions for liabilities (£8,314 up from £1,197), indicating potential contingent liabilities or unresolved obligations.

3. Positive Indicators:

• Tangible Fixed Assets Growth: Fixed assets increased significantly to £43,754, reflecting investment in plant, machinery, and motor vehicles that could support operational capacity.
• No Overdue Filings: The company is current on its accounts and confirmation statement filings, demonstrating regulatory compliance and governance diligence.
• Stable Management: The sole current director has been in position since incorporation with no resignations or disqualifications noted, suggesting stability in leadership.

4. Due Diligence Notes:

• Investigate the nature of the large other creditors (£108,773) to understand if these are trade payables, loans, or related party balances and the terms involved.
• Clarify the reasons for the increase in provisions for liabilities and any contingent risks that may impact future cash flows or solvency.
• Review cash flow forecasts and bank facilities to assess the company’s ability to meet short-term obligations given the negative working capital position.
• Examine the company’s profitability and revenue trends as income statement detail is not provided; understanding operational performance is critical.
• Confirm whether the company is dependent on director or shareholder support to continue as a going concern, as flagged in the accounting policies.