Company Number: 14554491

Analysis Date: 2025-07-20 19:03 UTC

1. Risk Rating: HIGH
   The company exhibits a net liability position within its first full year, indicating insolvency on a balance sheet basis. Negative net current assets suggest liquidity stress, raising doubts about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Negative Equity: Shareholders' funds are negative at £7,097, indicating accumulated losses or capital deficiency. This undermines solvency and investor confidence.
• Liquidity Deficit: Current liabilities of £136,977 far exceed current assets of £3,867, resulting in a working capital deficit of £133,110. This signals immediate cash flow strains.
• Debt Burden: Significant long-term creditors (£127,810) create pressure on future cash flows and operational flexibility. The absence of an audit limits transparency on debt terms and covenants.

3. Positive Indicators:

• Fixed Assets Base: Ownership of fixed assets valued at £255,263 provides some collateral value that could be leveraged or sold to alleviate financial pressure.
• Compliance: No overdue filings or confirmation statements, indicating good regulatory compliance and governance in administrative matters.
• Experienced Directors: The three directors control equal shares and voting rights, suggesting consolidated management oversight and accountability.

4. Due Diligence Notes:

• Review detailed creditor composition and repayment terms to assess refinancing risk or impending defaults.
• Examine cash flow statements and management plans to understand how liquidity gaps are being addressed operationally.
• Investigate the nature of fixed assets for realizable value and potential encumbrances.
• Consider obtaining unaudited management accounts or projections for 2024 to evaluate progress against financial distress.
• Verify director backgrounds for any prior insolvency or regulatory issues despite current clean records.