Company Number: 13641081

Analysis Date: 2025-07-20 11:54 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by large current liabilities far exceeding current assets and a history of negative net assets until recently. The considerable creditor balances, especially amounts due after more than one year, raise concerns about the company’s ability to meet obligations without further capital infusion or restructuring.

2. Key Concerns:

• Liquidity Shortfall: Current liabilities (£1,565,179) substantially exceed current assets (£58,617) as of the latest accounts, resulting in a negative net working capital of approximately £1.5 million. This imbalance indicates potential cash flow difficulties for meeting short-term obligations.
• High Long-Term Creditors: The company has significant creditors due after one year (£225,000 in 2024, previously over £1.1 million), suggesting reliance on external financing or deferred payments that may pressure future solvency.
• Volatile Equity Position: The net assets position improved from negative (£28,047) in 2022 to positive (£469,428) in 2024, primarily due to increased fixed assets. However, this likely reflects asset revaluation or capital injections rather than operational profitability, and the absence of profit and loss information limits assessment of ongoing viability.

3. Positive Indicators:

• Increasing Fixed Assets: Fixed assets increased from £1.63 million to £2.2 million, indicating investment in potentially productive resources or capital growth.
• No Overdue Filings: The company is current with statutory filing obligations for accounts and confirmation statements, reflecting regulatory compliance and administrative diligence.
• Stable Employment: The employee count remained stable at 4 over the reported periods, suggesting operational continuity.

4. Due Diligence Notes:

• Obtain and review the profit and loss accounts or management accounts to assess operational profitability and cash flow dynamics, as these were not included in the filed micro-entity accounts.
• Investigate the nature and terms of the long-term creditors and any related party loans or contingent liabilities that may impact future financial obligations.
• Clarify the source of the increase in fixed assets and whether these are tangible productive assets or intangible/non-liquid items.
• Review the relationship and financial support from the significant controlling shareholder, Lanagrade Limited, who owns 50-75% of shares, to determine potential financial backing or risk concentration.
• Confirm absence of director disqualifications or governance issues given multiple directors appointed and the company's relatively recent incorporation.