Company Number: 13756244

Analysis Date: 2025-07-29 20:03 UTC

1. Risk Rating: HIGH
   The company exhibits a deteriorated financial position as of the latest accounts with net liabilities and negative working capital. This raises significant concerns regarding solvency and liquidity.

2. Key Concerns:

• Negative Net Current Assets: At the year ended 30 November 2023, net current assets stand at -£5,364, a sharp decline from +£7,290 the previous year, indicating potential liquidity stress.
• Net Liabilities Position: Shareholders’ funds and net assets have swung from positive £7,874 in 2022 to negative £5,020 in 2023, reflecting accumulated losses or write-downs that exceed equity.
• Director Loan and Financial Support: The director’s loan balance has increased to £6,503, and the director has explicitly stated ongoing financial support is necessary for the company to continue as a going concern, implying reliance on external funding rather than operational cash flow.

3. Positive Indicators:

• Timely Filing and Compliance: The company is up to date with both accounts and confirmation statement filings, indicating regulatory compliance and governance diligence.
• Single Director and Controlling Shareholder: Clear governance with one director who also holds majority control may simplify decision-making and strategic direction.
• No Audit Requirement: The company qualifies for exemption from audit, consistent with its size and reducing administrative burden.

4. Due Diligence Notes:

• Examine the Detailed Profit and Loss Account: Since only filleted accounts were filed, review the full P&L to understand the causes of the significant decline in net assets and profitability.
• Assess Cash Flow and Debt Profile: Investigate the timing and nature of liabilities, especially other creditors which increased significantly, to evaluate cash flow pressures.
• Review Director’s Financial Support Terms: Clarify the sustainability and terms of the director loan and confirm any plans for recapitalization or operational turnaround.
• Evaluate Stock Valuation and Debtor Quality: Stocks represent a large proportion of current assets; assess the risk of stock obsolescence or slow-moving inventory, as well as the collectability of debtors.

Executive Summary