Company Number: 14723565

Analysis Date: 2025-07-20 11:13 UTC

1. Risk Rating: HIGH
   The company’s financials reveal persistent net liabilities and negative net current assets, indicating significant solvency and liquidity risks within a short operating history.

2. Key Concerns:

• Solvency Issues: The balance sheet shows negative net assets of £11,367 as of 31 March 2025, worsening from a negative £6,726 the previous year, suggesting ongoing losses and erosion of shareholder equity.
• Liquidity Constraints: Current liabilities (£25,245) exceed current assets (£9,204), producing a negative net current asset position of £15,241, which signals potential difficulties in meeting short-term obligations.
• Increasing Long-Term Creditors: Creditors due after one year have risen substantially to £14,544 from £4,743, increasing leverage and potential refinancing risks.

3. Positive Indicators:

• Growth in Fixed Assets: Fixed assets nearly doubled from £9,375 to £18,417, which could imply investment in operational capacity or equipment.
• Stable Workforce: The company maintains a consistent small staff of 2 employees, which aligns with its micro-entity status and may help control operating expenses.
• No Filing Delinquencies: All statutory accounts and confirmation statements are filed on time, indicating good compliance and governance practices.

4. Due Diligence Notes:

• Investigate the nature and terms of the significant long-term creditors to assess refinancing risk and debt servicing capacity.
• Review cash flow statements and profit & loss accounts (not provided) to understand operational cash generation and loss drivers.
• Confirm the sustainability of the business model given ongoing negative equity and working capital deficits, especially in a competitive motor vehicle parts retail and repair sector.
• Assess the director’s plans to restore financial health and whether additional capital injections or restructuring is anticipated.