Company Number: 13760972

Analysis Date: 2025-07-29 20:42 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position and net current liabilities worsening over the last reported year, indicating solvency concerns and potential financial distress risk.

2. Key Concerns:

• Negative net assets of £638 as at 30 Nov 2023, down from positive £4,770 in prior year, signaling erosion of shareholder equity.
• Net current liabilities of £11,888 indicating inability to cover short-term obligations with current assets, raising liquidity risk.
• Small scale operation (micro entity, 2 employees) with limited fixed assets and potential dependence on few directors/shareholders, which may challenge operational stability and scalability.

3. Positive Indicators:

• Company status is active with no overdue filings or compliance issues noted, suggesting regulatory compliance is currently maintained.
• Directors have been in place since incorporation with no adverse records disclosed.
• Business operates in a defined niche (vehicle maintenance and repair) which may benefit from steady local demand.

4. Due Diligence Notes:

• Investigate recent trading performance, cash flow statements, and any creditor arrangements to understand how liquidity shortfalls are managed.
• Confirm whether the negative equity position is a temporary issue or reflects ongoing losses and capital erosion.
• Review potential contingent liabilities or off-balance sheet exposures that may exacerbate financial risk.
• Assess directors' plans for business turnaround or recapitalization given declining net assets.