Company Number: 12571375

Analysis Date: 2025-07-29 20:22 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in net current assets and net assets, moving from positive net assets of £1,099 in 2020 to negative net assets of £6,266 in 2024. This indicates a solvency risk as liabilities exceed assets, which raises concerns about the company's ability to meet its obligations.

2. Key Concerns:

• Negative Net Assets and Working Capital: The 2024 accounts show current liabilities (£7,641) far exceeding current assets (£1,174), producing a negative net current assets figure of -£6,467. This suggests liquidity stress and potential cash flow problems.
• Consistent Decline in Fixed Assets: Fixed assets have decreased from £500 in 2020 to £200 in 2024, which may reflect asset disposals or depreciation without adequate reinvestment, potentially impacting operational capacity.
• Minimal Share Capital and Single Director: With only £1 share capital and one director (also the sole employee), there is limited capital buffer and potential governance risk related to lack of oversight or succession planning.

3. Positive Indicators:

• Up-to-date Filing Compliance: Both accounts and confirmation statement filings are current with no overdue filings, indicating compliance with regulatory requirements.
• Micro-entity Status: As a micro-entity, reporting requirements are minimal, reducing administrative burden and costs for the company.
• Active Trading Status: The company is active with ongoing operations in the maintenance and repair of motor vehicles sector, a typically stable service industry.

4. Due Diligence Notes:

• Investigate the nature and timing of liabilities causing the negative net assets—are these trade payables, loans, or tax liabilities?
• Confirm cash flow trends and whether the company is generating sufficient operating cash to sustain ongoing activities.
• Review director’s plans or statements concerning financial recovery or restructuring to address the solvency issues.
• Assess whether there have been any related party transactions or unusual creditor arrangements given the director is also the sole employee.
• Verify the accuracy of fixed asset valuation and whether impairments or disposals have affected operational capabilities.