Company Number: 13566503

Analysis Date: 2025-07-29 12:57 UTC

1. Risk Rating: HIGH
   The company exhibits ongoing negative net asset positions with worsening liquidity metrics, indicating significant solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets: The company has reported net liabilities of £2,623 as of August 2024, although improved from £8,884 in 2023, it remains in a net deficit position, reflecting accumulated losses and potential solvency concerns.
• Negative Working Capital: Current liabilities (£13,041) exceed current assets (£8,392), resulting in negative net current assets of £4,477, which signals liquidity stress and potential difficulties meeting short-term obligations.
• Lack of Audited Accounts and Limited Financial Detail: The accounts are filed under micro-entity provisions with no audit and no profit and loss account filed, limiting transparency on profitability, cash flow, and operational performance.

3. Positive Indicators:

• Timely Filings: Accounts and confirmation statements are up to date with no overdue filings, indicating compliance with statutory requirements and governance discipline.
• Stable Management and Ownership: Directors and PSCs are consistent since incorporation, both actively involved and resident locally, which could support stability in governance and decision-making.
• Active Trading Status and Online Presence: The company is active with a functioning website promoting its escape room business, suggesting ongoing commercial operations.

4. Due Diligence Notes:

• Obtain detailed management accounts or cash flow statements to assess operational cash generation and liquidity beyond the limited micro-entity filings.
• Investigate the nature and timing of creditor obligations to understand short-term cash flow pressures and any risk of default.
• Review directors’ plans to return the company to profitability and positive net asset status, including any capital injections or restructuring efforts.
• Confirm the absence of contingent liabilities or off-balance sheet obligations that might exacerbate financial risk.
• Assess customer demand and market position for the escape room business in Wickford and surrounding areas to gauge sustainability.