Company Number: 13134364

Analysis Date: 2025-07-20 13:59 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity and solvency challenges as evidenced by persistent negative net current assets and a steep decline in shareholders' funds over the latest two years. The current liabilities exceed current assets by a substantial margin, indicating an inability to meet short-term obligations without additional funding.

2. Key Concerns:

• Negative Net Current Assets: The latest year shows net current liabilities of £4,481 against current assets of only £3,729, signaling liquidity stress.
• Declining Shareholders' Funds: Equity has decreased sharply from £2,267 in 2024 to £318 in 2025, implying accumulated losses or capital erosion.
• Director Loans as Creditors: Substantial loans from directors (£6,168 in 2025) form a large portion of current liabilities, suggesting reliance on related-party financing which may not be sustainable.

3. Positive Indicators:

• Fixed Asset Base: The company holds tangible fixed assets valued at £4,799, providing some asset backing.
• No Overdue Filings: Annual accounts and confirmation statements are filed on time, reflecting regulatory compliance.
• Active Status with Recent Director Appointment: The company is active with an additional director appointed recently, potentially indicating ongoing management efforts.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans and whether they are repayable on demand or convertible to equity.
• Review detailed profit and loss data (not provided) to understand the causes of equity erosion and whether losses are operational or due to one-off items.
• Assess cash flow forecasts and working capital management plans to determine if liquidity issues are expected to persist.
• Confirm whether the company has access to external financing or support from stakeholders to sustain operations.
• Verify the impact of no employees and the business model sustainability in the advertising agency sector, including client base and revenue streams.