Company Number: 13107153

Analysis Date: 2025-07-29 19:37 UTC

1. Risk Rating: HIGH
   The company shows significant solvency concerns with net liabilities and a large amount of long-term creditors exceeding total assets. This suggests material financial distress and risk to creditors and investors.

2. Key Concerns:

• Negative Net Assets: Net assets deteriorated from -£41k (2023) to -£71k (2024), indicating overall liabilities exceed assets.
• High Long-Term Creditors: Creditors due after one year increased to £181k, well above total assets, suggesting over-leverage and potential difficulty in meeting obligations.
• Liquidity Mismatch: Although net current assets are positive (~£80k), current liabilities are low relative to long-term creditors. The mismatch may pressure cash flow if long-term debts become due or refinancing is required.

3. Positive Indicators:

• Stable Current Assets: Current assets remained steady around £92k, suggesting consistent working capital availability.
• Small Employee Base: Only 2 employees, indicating low fixed operating costs, which can help manage cash outflows.
• Timely Filings: No overdue accounts or confirmation statements, demonstrating compliance with statutory requirements.

4. Due Diligence Notes:

• Investigate the nature and terms of the large long-term creditors to assess refinancing risk, covenants, and repayment schedules.
• Review cash flow forecasts and bank facilities to understand liquidity management and ability to service debts.
• Understand whether the negative net asset position is due to recent losses or accounting treatments (e.g., asset revaluations or impairments).
• Assess directors’ plans or restructuring efforts to improve solvency and operational stability.
• Confirm absence of director disqualifications or regulatory issues given the company’s financial stress.