Company Number: 13128244

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

1. Risk Rating: HIGH
   Justification: The company exhibits significant net current liability positions (over £400k in 2023) and relies heavily on interest-free, repayable-on-demand loans from group companies (£410k), indicating liquidity stress and dependence on external support for ongoing operations.

2. Key Concerns:

• Liquidity Risk: Net current liabilities of £404,749 as of March 2023, with current assets of only £10,389, suggest an inability to meet short-term obligations without external funding.
• Solvency Risk: Though net assets are positive (£74,674), the large current liabilities relative to current assets and the reliance on related party loans that are repayable on demand could pose solvency challenges if support is withdrawn.
• Operational Risk: The company has increased its tangible fixed assets significantly (£639k in 2023 versus £170k in 2022), presumably through capital expenditure, potentially straining cash flow. The absence of profit and loss data limits assessment but the directors' note on going concern depends on continued group support, raising sustainability questions.

3. Positive Indicators:

• Compliance: The company is up to date with its filing obligations, with no overdue accounts or confirmation statements, indicating good regulatory compliance.
• Equity Position: Positive net assets and shareholders’ funds that increased from £48k to £74k in one year reflect retained earnings or capital contributions.
• Experienced Management: Multiple directors appointed since incorporation, suggesting stable governance structure.

4. Due Diligence Notes:

• Review detailed profit and loss accounts, cash flow statements, and management accounts to assess operational performance and cash generation capacity.
• Investigate terms and sustainability of the related party loans, including any risk of demand for repayment or changes in group support.
• Understand the nature and valuation of tangible fixed assets added in 2023 and whether they are generating expected returns or impairments might be required.
• Confirm absence of director disqualifications or adverse governance issues via director conduct records.