Company Number: 13788105

Analysis Date: 2025-07-20 17:45 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk as evidenced by persistent negative net assets and net current liabilities over the last three years. The current liabilities substantially exceed current assets, indicating an inability to meet short-term obligations without additional financing or asset disposals.

2. Key Concerns:

• Persistent negative net assets (deficit of £12,393 as of 2023) reflecting accumulated losses or undercapitalization.
• Negative net working capital (£-27,409 in 2023) indicating liquidity stress and potential cash flow difficulties.
• Recent director turnover with the founding director resigning and replacement only appointed very recently (December 2024), which may suggest governance or operational instability.

3. Positive Indicators:

• The company is up to date with statutory filings with no overdue accounts or confirmation statements, suggesting compliance with regulatory requirements.
• The business operates within the "Other human health activities" sector (SIC 86900), a potentially stable sector with ongoing demand.
• The fixed assets show a slight increase year-on-year, indicating retention or modest investment in operational capacity.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to understand creditor pressure and repayment schedules.
• Assess cash flow statements and any off-balance sheet obligations (none disclosed) to clarify liquidity further.
• Review business model sustainability and profitability prospects given ongoing losses and whether there is a viable turnaround plan.
• Clarify reasons behind director resignation and impact of new director appointment on company strategy and governance.
• Confirm whether there are any related party transactions or financial support from shareholders given the negative equity position.