Company Number: 12621729

Analysis Date: 2025-07-29 16:09 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with persistent negative net assets and current liabilities considerably exceeding current assets. This financial position indicates a high risk that the company may struggle to meet its obligations.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £155,001 as of 31 May 2024, a decline from prior years, indicating accumulated losses and weakened equity.
• Severe Working Capital Deficit: Net current liabilities stand at £237,293, showing an inability to cover short-term debts with current assets, raising liquidity risk.
• Dependence on Director Loans and Creditors: Significant short-term creditors (£325,658) and loans from directors (£20,518) suggest reliance on related-party funding and external creditors to sustain operations.

3. Positive Indicators:

• No Filing Delinquencies: Accounts and confirmation statements are up to date with no overdue filings, reflecting regulatory compliance in reporting.
• Stable Employee Base: An average of 6 employees maintained over recent years suggests operational continuity without workforce reductions.
• Active Company Status: The company remains active with no indications of liquidation or administration proceedings.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans and the company's ability to refinance or repay these amounts.
• Review cash flow statements (not provided) to assess operational cash generation and short-term liquidity management.
• Obtain management commentary or strategic plans addressing the ongoing losses and negative equity to evaluate sustainability.
• Clarify the impact and rationale of recent name changes on business focus or restructuring efforts.
• Confirm whether the company has external financing or support agreements beyond director loans.
• Assess the credit terms with major trade creditors and any potential pressure from suppliers.