Company Number: 12943853

Analysis Date: 2025-07-20 17:39 UTC

1. Risk Rating: HIGH
   Justification: The company’s 2023 financial statements show significant negative net assets (£-16,538) and a large excess of current liabilities (£138,944) over current assets (£20,256), indicating insolvency risk. The balance sheet reflects net current liabilities of £118,688, which suggests liquidity pressures and inability to meet short-term obligations from available assets.

2. Key Concerns:

• Solvency Risk: The company’s net liabilities position and negative working capital raise serious concerns about its ability to meet debts as they fall due.
• Liquidity Concerns: Current liabilities far exceed current assets; cash flow difficulties may be imminent unless liabilities are restructured or assets converted rapidly to cash.
• Operational Stability: Although employee numbers increased to 2 in 2023, the financial position suggests operational challenges. The jump in fixed assets from zero to £102,150 could indicate recent investment, but without corresponding increase in net assets or profitability, this may strain resources.

3. Positive Indicators:

• Compliance: No overdue filings; accounts and confirmation statements are up to date, which indicates good regulatory compliance and governance practices.
• Shareholder Support: Although minimal share capital (£100), shareholders’ funds increased from £100 in 2022 to a negative position in 2023, suggesting the possibility of capital injections or asset purchases, though further details are needed.
• Active Directors: Two directors with clear roles and no disqualification records noted, supporting continuity of management.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets (£102,150) to determine if they are tangible, realizable assets or overvalued intangible or illiquid assets.
• Review detailed cash flow statements and creditor aging schedules to assess short-term liquidity and creditor relationships.
• Understand the reason for the large increase in current liabilities and whether these represent trade creditors, loans, or other obligations.
• Examine the company’s business model and contracts in freight transport by road (SIC 49410) to assess revenue streams and operational viability.
• Confirm if any contingent liabilities or related party transactions could impact financial stability.