Company Number: 14188875

Analysis Date: 2025-07-29 19:35 UTC

1. Risk Rating: HIGH
   Justification: The company shows significant negative net current assets (working capital deficit) of £118,543 in the latest year and had an even larger deficit in prior years. Current liabilities far exceed current assets, indicating liquidity stress. The absence of debtors in 2024 compared to £150,000 in prior years signals potential collection or revenue issues.

2. Key Concerns:

• Liquidity Crisis: Cash and current assets are negligible (£17 cash and no debtors in 2024), while current liabilities stand at £118,560, indicating inability to meet short-term obligations on time.
• Declining Working Capital: Net current liabilities have improved from -£257,997 in 2023 to -£118,543 in 2024 but remain substantially negative, creating ongoing solvency concerns.
• Revenue or Receivables Collapse: Debtors of £150,000 in 2023 disappeared in 2024, suggesting either write-offs or lack of new sales; this undermines operating cash flow and business sustainability.

3. Positive Indicators:

• Positive Net Assets and Shareholder Funds: Total assets less current liabilities improved to £170,381 with shareholder funds at the same figure, indicating some long-term asset backing.
• Tangible Fixed Assets: The company holds significant plant and machinery assets (£288,924 net book value), which could be leveraged or sold if needed.
• No Filing or Compliance Issues: All statutory accounts and confirmation statements are up to date and filed on time, indicating regulatory compliance and good governance in that respect.

4. Due Diligence Notes:

• Investigate the nature and collectability of prior year debtors of £150,000 and reasons for their disappearance in the latest accounts.
• Assess the company's cash flow forecasts and bank facilities to understand short-term liquidity management.
• Review contracts and order book to gauge revenue pipeline and operational viability.
• Confirm whether the tangible fixed assets are encumbered or free for disposal to improve liquidity if required.
• Evaluate the director’s plans or strategies to address working capital deficits and improve cash flow.