Company Number: 13041597

Analysis Date: 2025-07-20 13:29 UTC

1. Risk Rating: HIGH

The company shows a significant deterioration in its financial position over the most recent year, raising concerns about its solvency and liquidity.

2. Key Concerns:

   • Sharp Decline in Net Current Assets: Net current assets dropped from £20,082 in 2023 to £3,691 in 2024, indicating a substantial tightening of working capital.
   • Significant Increase in Current Liabilities: Current liabilities increased from £3,340 in 2023 to £17,950 in 2024, largely attributable to a £12,803 director’s loan account liability, which may signal reliance on director funding to cover short-term obligations.
   • Absence of Debtors and Reduced Cash: Debtors dropped to zero in 2024 from £684 previously, and cash reserves decreased slightly, possibly indicating collection issues or reduced revenue inflows.

3. Positive Indicators:

   • Compliance with Filing Obligations: The company is current with both its accounts and confirmation statement filings, suggesting adherence to regulatory requirements.
   • Stable Director Appointment: Only one director, with no indication of disqualifications or governance issues.
   • Small Company Reporting Exemptions Utilised: This suggests the company is operating within a modest scale, limiting complexity and exposure to large external liabilities.

4. Due Diligence Notes:

   • Investigate the nature and terms of the director’s loan account to understand its impact on liquidity and solvency, including repayment plans or potential for conversion into equity.
   • Examine revenue trends and cash flow statements (not provided) to assess operational sustainability and ability to generate consistent income.
   • Review reasons behind the sharp rise in current liabilities and whether these are short-term timing issues or indicative of financial distress.
   • Confirm if any contingent liabilities or off-balance sheet obligations exist that could further impact financial stability.
   • Evaluate the business model for long-term viability given shrinking net assets and increased reliance on director funding.