Company Number: 12931351

Analysis Date: 2025-07-29 15:03 UTC

1. Risk Rating: HIGH
   The company shows a concerning negative net asset position and significant short-term creditor obligations exceeding current assets, indicating potential solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets: The balance sheet reveals net liabilities of £24,807 as of 31 October 2024, worsening from £14,302 in the prior year, which signals erosion of shareholder value and financial distress.
• High Current Liabilities vs Current Assets: Current liabilities (£19,905) greatly exceed current assets (£2,482), resulting in a negative net current asset position of -£17,423, indicating poor short-term liquidity and potential cash flow difficulties.
• Increasing Long-term Creditors: Creditors falling due after more than one year increased to £8,425 in 2024 from £5,422 in 2023, which may suggest reliance on external funding and growing financial obligations that need servicing.

3. Positive Indicators:

• Consistent Director Control and Ownership: The sole director and 100% shareholder is fully engaged, suggesting clear governance and accountability.
• Compliance with Filing Requirements: No overdue accounts or confirmation statements, demonstrating regulatory compliance and up-to-date statutory filings.
• Micro-entity status: Limited scale may reduce complexity and financial reporting obligations, allowing focused management attention.

4. Due Diligence Notes:

• Investigate the nature and terms of the current and long-term liabilities to assess the imminence and conditions of repayment obligations.
• Review the company’s cash flow statements and bank facilities to evaluate liquidity management and ability to meet short-term debts.
• Understand the business model and revenue streams underpinning the balance sheet numbers to assess operational viability and prospects for turnaround.
• Confirm whether any related party transactions or director loans contribute to the liabilities and assess their implications for financial stability.