Company Number: 14226298

Analysis Date: 2025-07-20 11:23 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to persistent net liabilities, significant current liabilities greatly exceeding current assets, and negative equity. These factors indicate a precarious financial position with potential solvency and liquidity challenges.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company’s net liabilities worsened from -£9,983 in 2023 to -£22,746 in 2024, signaling erosion of equity and potential insolvency risk.
• Severe Working Capital Deficit: Current liabilities (£208,581) vastly exceed current assets (£1,109), resulting in a negative net current asset position of -£207,472. This raises concerns about the company’s ability to meet short-term obligations as they fall due.
• Reliance on Long-Term Creditors: Creditors due after more than one year total £182,641, which may represent debt that requires servicing despite the company’s weak liquidity, posing further financial strain.

3. Positive Indicators:

• Stable Fixed Asset Base: Fixed assets remain consistent at £367,907 over the years, indicating some tangible asset backing that could be leveraged or sold if necessary.
• No Overdue Filings: The company is current with both accounts and confirmation statement submissions, indicating compliance with regulatory filing requirements.
• Single Director with Full Control: Mr Oliver James Foster holds 75-100% ownership and voting rights, which may facilitate swift decision-making in financial or strategic matters.

4. Due Diligence Notes:

• Investigate the nature and terms of the company’s long-term creditors and any associated covenants or refinancing risks.
• Assess the underlying cause for persistent net liabilities and working capital deficits — whether due to operating losses, asset impairments, or capital structure issues.
• Review cash flow statements or internal management accounts, if available, to understand short-term liquidity management and operational cash generation.
• Examine any contingent liabilities or off-balance sheet obligations not captured in the micro-entity accounts.
• Confirm whether the fixed assets are income-generating or if they include property held for sale, and assess valuation adequacy.