Company Number: 13165420

Analysis Date: 2025-07-20 12:33 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as evidenced by persistent negative net current assets and shareholders’ funds over multiple periods. Despite a slight improvement in fixed assets, liquidity remains constrained with current liabilities far exceeding current assets as of the latest financial year.

2. Key Concerns:

• Negative Working Capital: The company’s current liabilities (£81,186) substantially exceed its current assets (£1,739) as of 31 January 2024, indicating potential liquidity stress and difficulty meeting short-term obligations.
• Consistent Negative Equity: Shareholders’ funds remain negative (£-33,279 in 2024), reflecting accumulated losses or undercapitalization, raising solvency risk.
• No Employees and Micro-Entity Status: The absence of employees and micro-entity filing status limit transparency and scale, potentially impacting operational sustainability and growth prospects.

3. Positive Indicators:

• Active Trading Status: The company is active, not in liquidation or administration, suggesting ongoing operations.
• Registered Website and Contact Information: Presence of an active website with contact details and social media channels indicates marketing efforts and customer engagement.
• Directors’ Stability and Control: The two directors, who are also significant shareholders, have maintained control since incorporation, implying stable governance at the leadership level.

4. Due Diligence Notes:

• Cash Flow Analysis: Request detailed cash flow statements to assess operational cash generation and short-term liquidity management beyond balance sheet snapshots.
• Debt Structure and Payment Terms: Investigate the nature of current liabilities to understand creditor composition, repayment schedules, and any overdue debts.
• Business Model Viability: Evaluate the revenue model and market demand for tipi hire in the South-West region, including client contracts and booking pipeline.
• Director Background Checks: Although no disqualifications are evident, further review of director conduct and creditworthiness is prudent given financial strain.
• Future Funding Plans: Inquire about capital injections or refinancing plans to address negative net assets and support business continuity.