Company Number: 14306152

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

1. Risk Rating: MEDIUM
   The company shows signs of financial strain with net current liabilities and a significant long-term bank loan introduced in the latest year, but it remains operational and compliant with filings. The equity base has reduced but is still positive, indicating some solvency buffer.

2. Key Concerns:

• Negative net current assets (£-7,421) as of 31 August 2024 compared to positive working capital last year, indicating liquidity pressure.
• Introduction of £20,000 long-term bank loan in 2024 raises leverage and repayment obligations risk.
• Significant decline in shareholders’ funds from £9,034 in 2023 to £2,699 in 2024, potentially due to losses or asset impairment, weakening financial resilience.

3. Positive Indicators:

• Company is up to date with statutory filings and accounts, demonstrating regulatory compliance and governance discipline.
• Tangible assets increased substantially from £6,231 to £30,120, suggesting investment in operational capacity or equipment.
• Cash balance, although reduced, remains positive (£17,034) which provides some liquidity to manage short-term obligations.

4. Due Diligence Notes:

• Investigate causes of decline in net current assets and shareholder funds: review profit and loss statement (not filed) or management accounts for recent trading performance.
• Clarify terms, maturity, and covenants of the £20,000 bank loan to assess repayment risk and impact on cash flow.
• Examine debtor aging and recoverability of trade debtors (£5,838) to validate liquidity assumptions.
• Assess nature of increased tangible asset additions (£25,363) for impairment risk or overcapitalization.
• Confirm absence of director disqualifications or governance issues not disclosed in current data.