Company Number: 14123734

Analysis Date: 2025-07-29 12:17 UTC

1. Risk Rating: HIGH

This company shows significant liquidity stress with current liabilities vastly exceeding current assets, resulting in large net current liabilities each year. Although the company holds fixed assets, the working capital position is strongly negative, indicating potential difficulty meeting short-term obligations. Given the company’s micro-entity size and absence of audit, financial transparency and robustness are limited.

2. Key Concerns:

• Negative Working Capital: Persistent net current liabilities around £350k-£370k over multiple years raise solvency concerns.
• Limited Liquidity: Current assets are very low (under £10k), restricting ability to cover immediate liabilities.
• Concentration of Control: Single director and 100% shareholder may reduce governance oversight, increasing operational risk.

3. Positive Indicators:

• Consistent Fixed Assets: Substantial fixed asset base (£372k) suggests tangible backing to the business.
• No Overdue Filings: Company maintains timely statutory compliance with accounts and confirmation statements.
• Micro-Entity Filing: Reduced complexity in reporting requirements may suit small scale operations.

4. Due Diligence Notes:

• Review nature and liquidity of fixed assets to assess realizable value.
• Investigate the composition of current liabilities and upcoming payment schedules.
• Examine cash flow statements or management accounts, if available, for short-term liquidity.
• Assess business model sustainability given operational scale and negative working capital.
• Confirm if any contingent liabilities or related party transactions exist.