Company Number: 12951343

Analysis Date: 2025-07-20 18:28 UTC

1. Risk Rating: HIGH
   Justification: The company reported negative net assets (£-1,261) in the latest financial year with persistent net current liabilities around £-139,520, indicating solvency challenges. The micro-entity’s current assets have sharply decreased from £85,104 to £6,635 while current liabilities remain substantial, suggesting liquidity strain. The financial structure relies heavily on long-term creditors (£267,672), which may pressure operational cash flows.

2. Key Concerns:

• Negative Equity Position: Shareholders’ funds turned negative in 2024, signaling the company’s liabilities exceed its assets, which is a critical solvency red flag.
• Deteriorating Liquidity: Current assets dropped significantly while current liabilities stayed constant, resulting in a worsened working capital deficit that could impair short-term obligations.
• High Reliance on Long-Term Debt: Long-term creditors almost equal total fixed assets, indicating the company funds its asset base largely through debt with limited equity buffer, increasing financial risk.

3. Positive Indicators:

• Consistent Fixed Asset Base: Fixed assets remain stable (~£406k), suggesting some asset stability and possible underlying operational capacity.
• Timely Filing Compliance: No overdue accounts or confirmation statements, which indicates good regulatory compliance and governance discipline.
• Experienced Director Presence: The current director has been in place since incorporation, which may provide continuity in management.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess refinancing risk and covenant compliance.
• Review the company’s cash flow statements and bank facilities to understand liquidity management and short-term funding adequacy.
• Verify the company’s business plan or pipeline for asset development or sales under SIC codes 68100 and 41100 to assess sustainability and revenue generation prospects.
• Clarify reasons behind the sharp decline in current assets from 2023 to 2024, including any receivable write-offs or asset disposals.
• Confirm no director disqualifications or governance issues beyond the data provided.