Company Number: 13120647

Analysis Date: 2025-07-20 12:05 UTC

1. Risk Rating: HIGH
   The company shows persistent and increasing net current liabilities and negative net assets over four consecutive years, indicating significant solvency concerns. The micro-entity status limits financial disclosures, which restricts a full assessment but the available data clearly signals financial distress.

2. Key Concerns:

• Solvency Risk: Net current liabilities have grown from approximately £13.8k in 2021 to £29.4k in 2024, with net assets correspondingly negative and worsening, suggesting inability to meet short-term obligations.
• Liquidity Issues: Current liabilities significantly exceed current assets each year, implying ongoing cash flow difficulties and potential reliance on external financing or shareholder support.
• Operational Viability: The company has not reported profitability or positive equity, and the principal activity description is missing in the accounts, raising questions about business sustainability and revenue generation.

3. Positive Indicators:

• Compliance in Filings: Accounts and confirmation statements are filed on time, with no overdue filings reported, indicating adherence to regulatory requirements.
• Stable Ownership and Control: The controlling shareholder (Mr. Kurtis Knowles) owns 75-100% shares and is actively managing the company as current director, which may facilitate swift decision-making.
• No Indications of Insolvency Proceedings: The company is active with no signs of liquidation, administration, or receivership, suggesting at least formal operational continuity.

4. Due Diligence Notes:

• Investigate the underlying causes of continued negative net assets and persistent liquidity deficits, including business model viability and revenue streams.
• Review the latest management accounts or cash flow statements (if available) to assess current liquidity and operational cash flows beyond the limited micro-entity accounts.
• Clarify the nature and status of any creditors or trade payables contributing to current liabilities, including any related party transactions or loans from shareholders.
• Assess the impact of the recent change in directors in late 2023 and any strategic adjustments implemented since.