Company Number: 12920725

Analysis Date: 2025-07-20 17:39 UTC

1. Risk Rating: HIGH
   The company exhibits a deteriorating solvency position with negative net assets and working capital as of the latest financial year end. The persistent net current liabilities and negative shareholders’ funds raise significant concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets and Working Capital: As of 31 March 2024, net assets are -£1,575 and net current assets are -£2,847, indicating that liabilities exceed assets. This trend worsened from the prior year when net assets were positive but marginal.
• Consistent Liquidity Deficit: Current liabilities (~£4,800) have consistently exceeded current assets (~£2,000 to £2,700) over multiple years, suggesting ongoing liquidity strain.
• Small Scale and Limited Resources: The company is classified as a micro-entity with only one employee and minimal fixed assets, limiting operational resilience and flexibility to manage financial distress.

3. Positive Indicators:

• Compliance With Filing Requirements: The company’s annual accounts and confirmation statements are filed on time with no overdue filings, indicating good regulatory compliance and governance discipline.
• Sole Director and PSC Alignment: The sole director, Mr. Thomas Baker, controls 75-100% of shares and voting rights, ensuring clear decision-making authority which may facilitate swift strategic actions if needed.
• No Off-Balance Sheet Liabilities: The accounts disclose no off-balance sheet arrangements that might obscure the true financial position.

4. Due Diligence Notes:

• Review Cash Flow and Funding Sources: Assess recent cash flow statements and any financing arrangements or shareholder loans that may support liquidity given the negative working capital.
• Examine Business Model and Revenue Streams: Understand the operational sustainability and revenue generation to evaluate if losses are temporary or structural.
• Director’s Plans and Going Concern Assessment: Investigate management’s plans for improving financial health and confirm whether the accounts include appropriate going concern disclosures given the negative equity.
• Creditors and Debt Profile: Identify the nature and terms of current liabilities to assess risk of enforcement or insolvency proceedings.