Company Number: NI684853

Analysis Date: 2025-07-20 11:25 UTC

1. Risk Rating: HIGH
   The company shows a highly leveraged position with negative net current assets and minimal net assets, indicating significant solvency and liquidity risk. The low equity base and increasing current liabilities relative to current assets raise concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Negative Working Capital: The company has net current liabilities of £7,119 as of 31 March 2024, worsening from £2,266 the prior year, signaling liquidity stress.
• Minimal Net Assets: Net assets stand at only £195, marginally above zero, reflecting a very weak capital base and limited buffer against losses or unexpected expenses.
• Rising Short-Term Creditors: Current liabilities increased by over 30% year on year, particularly corporation tax liabilities, which may indicate payment delays or cash flow constraints.

3. Positive Indicators:

• Active Compliance: Accounts and confirmation statement filings are up to date with no overdue filings, suggesting good regulatory compliance.
• Stable Directorship and Control: Both directors have been in place since incorporation with clear and consistent PSC ownership, providing governance stability.
• Growing Fixed Assets: Tangible fixed assets increased significantly from £2,417 to £7,314 in the latest year, indicating investment in operational capacity.

4. Due Diligence Notes:

• Investigate the nature and timing of the corporation tax liability and other creditors to assess if these are accruing normally or accumulating due to cash flow issues.
• Review detailed cash flow statements and management accounts to understand working capital management and liquidity forecasts.
• Assess the company’s revenue streams and profitability trends since turnover and profit figures were not disclosed in the filings.
• Clarify the source of funding for fixed asset additions and whether this is sustainable without increasing debt or equity injections.