Company Number: 12862828

Analysis Date: 2025-07-29 16:56 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity and solvency concerns, evidenced by negative net current assets and minimal net assets. Despite director support, the financial position is precarious.

2. Key Concerns:

• Negative Net Current Assets: At £(23,366) for the year ending 31 March 2024, indicating current liabilities exceed current assets, raising short-term liquidity risks.
• Minimal Net Assets: Net assets have sharply declined from £12,588 in 2023 to just £123 in 2024, suggesting erosion of shareholder equity and financial distress.
• Heavy Reliance on Directors: The company’s going concern assumption depends on ongoing director support, with a significant director loan (£15,546) outstanding at year end, indicating operational cash flow challenges.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, indicating regulatory compliance and good governance practices.
• Active Business: The company remains active since incorporation in 2020 with a growth in debtors and some cash reserves (£46,389), showing ongoing trading activity.
• Experienced Directors: Directors have relevant industry experience (dog training, security activities) and maintain control, which may support operational stability.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans and their repayment schedule, as reliance on this funding is material to liquidity.
• Review cash flow forecasts and working capital management plans to assess how the company intends to address its negative net current assets.
• Understand the reasons behind the sharp decline in net assets and whether this reflects operational losses, asset write-downs, or other non-recurring events.
• Confirm no contingent liabilities or unpaid tax liabilities given large creditor balances related to taxes and PAYE.
• Assess the sustainability of the business model in the public order, safety, and private security sectors given current financial constraints.